The Bank of Japan (BoJ) released its interest rate decision on Wednesday. The BoJ kept its monetary policy unchanged. The central bank will expand its monetary base at an annual pace of 80 trillion yen.

The BoJ cut its inflation forecast for the year to March 2016 to 1.0%, down from a previous estimate of 1.7%. Growth forecast for 2016 was raised from 2.1% to 2.2%.

The BoJ Governor Haruhiko Kuroda said at the press conference that consumer inflation will slow due to lower oil prices. He noted that the time when the BoJ will reach 2% inflation may vary as oil prices are very volatile.

Kuroda also said that consumption is firm and the economy is recovering moderately.

He reiterated that the central bank will adjust its monetary policy without hesitation if needed.