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 left interest rates unchanged on Friday, but governor Kazuo Ueda said further hikes remain on the cards if the economy grows as predicted.

The Bank of Japan left its short-term policy rate unchanged Friday as it examines how the economy and markets are digesting its most recent interest-rate increase.