Japan keeps monetary policy unchanged, sees no need to raise rates

Tokyo

THE Bank of Japan kept monetary settings unchanged as expected on Tuesday and its chief hosed down market speculation of a shift away from ultra-easy policy later this year as inflation remained stubbornly shy of the central bank's target.

BOJ governor Haruhiko Kuroda said he saw no immediate need to raise interest rates or slow the bank's regular purchases of exchange-traded funds - one of its stimulus measures - despite criticism the buying was artificially inflating Tokyo stock prices, which hit a 26-year peak on Tuesday.