Bank of Japan keeps easy credit stance as inflation eludes

TOKYO (AP) — Japan's central bank opted Thursday to keep its ultra-lax monetary policy unchanged, saying rising private consumption, exports and business investment were signs that a moderate recovery has taken hold.

In a policy statement, the BOJ said it is committed to its nearly five-year-old 2 percent inflation target, but deemed inflation expectations to be in a "weakening phase." It forecast that inflation would likely gradually rise thanks to tightening capacity.

"Industrial production has been on an increasing trend, and labor market conditions have continued to tighten steadily," the statement said.

The central bank kept its key policy rate at minus 0.1 percent.

BOJ Gov.