Japan's monetary policy to stay

Japan's central bank announced on Wednesday it would keep its aggressive monetary policy in place to stimulate growth and counter a slowdown in inflation.

The country's economy, the world's third-largest, "has continued its moderate recovery trend," the Bank of Japan said in a statement released after a two-day monetary policy meeting.

Policymakers further slashed their inflation outlook amid plunging oil prices - a sign that the country is unlikely to reach its price targets.

The bank also revised up its view on exports and factory output despite data showing only faint recovery.

The announcement comes only two days after official figures indicated Japan had emerged from its recession. Japan logged 0.6 percent growth between October and December last year, but the expansion that was weaker than expected and it put the economy's annualized rate at 2.2 percent.

Earlier in 2014, the Japanese economy contracted for two consecutive quarters after a sales tax hike in April depressed consumer spending.

In October, the bank said it would expand its massive asset-buying program by pumping 10 trillion ($84 billion, 74 billion euros) to 20 trillion yen into the economy each year, a policy similar to the quantitative easing plans of the US Federal Reserve and the European Central Bank.

el/cjc (dpa, Reuters, AFP)