The decision came as the central bank seeks to wean its economy off the long-held ultra-easy monetary policy and curb the yen's slide against the U.S. dollar.

The Bank of Japan unanimously maintained its key short-term interest rate steady at 0.25% by a unanimous vote, in line with expectations at its September meeting, after raising it in July. The central bank also maintained its outlook that the economy was progressing steadily towards a modest recovery.

The Bank of Japan kept interest rates steady today and revised up its assessment on consumption, signalling its confidence a solid economic recovery would allow the central bank to raise interest rates again in coming months.