Japan's central bank cuts inflation outlook for fiscal 2015

The Bank of Japan (BOJ) on Wednesday cut its inflation forcast for the fiscal 2015 starting in April in the wake of recent plunge in oil price that has weighed down consumer prices, but it kept its policy of ultra-loose monetary easing.

Haruhiko Kuroda, Japan's central banker, said in a press conference Wednesday afternoon that the fast falling of oil price may affect the BOJ's move to achieve the 2 percent inflation goal.

The Japanese central bank also maintained its assessment of the Japanese economy after its two-day meeting, saying the country's economy, the third largest in the world, has continued to recover moderately as a trend.

The BOJ will continue to increase monetary base at an annual pace of about 80 trillion yen (680 bln U.S. dollars) by purchasing massive asset.

The central bank, however, raised its forecast for Japan's real gross domestic product growth for the next fiscal year to 2.1 percent from its previous read of 1.5 percent due to the low oil prices and an economic stimulus package approved earlier.