TOKYO (AP) Japan's central bank has opted to keep its ultra-loose monetary policy in place, saying the economy is on track for a "moderate recovery" despite slowing growth in the past quarter.
The Bank of Japan ended a two-day policy meeting without any moves to step up bond purchases aimed at pumping some 60 trillion yen to 70 trillion yen ($600 billion to $700 billion) a year into the world's third-largest economy.
There had been some speculation that easing might be stepped up after economic growth fell by half to 1.9 percent in July-September.
BOJ members said they believed Japan was progressing toward an inflation target of 2 percent, despite weakness in exports. Some economists question, however, whether higher prices are doing much to spur investment needed to sustain growth in the long term.
"Regarding risks, there remains a high degree of uncertainty concerning Japan's economy, including prospects for the European debt problem, developments in the emerging and commodity exporting economies and the pace of recovery in the U.S.," the central bank said in a statement.