The Bank of Japan has kept its massive easing policy unchanged. And it now says it will keep interest rates extremely low until at least the spring of next year.
Policymakers said in the report they project 1.6 percent inflation for the fiscal year starting in 2021.
The BOJ launched its monetary easing program in 2013 and pledged to achieve 2-percent inflation by 2015.
But the bank has kept its policy in place as the target remains out of reach.
Officials say the central bank will continue buying government bonds with the aim of keeping the yield on the benchmark 10-year bond at around zero percent.