Prices and personal consumption are not showing huge growth

The bank's nine-member policy board voted unanimously to freeze rate, a move widely expected by economists.

It also left its assessment of the Japanese economy unchanged, saying it is expanding moderately.

In July, the central bank ended its five-year policy of keeping base rates at zero in a bid to stimulate growth.

'Hawks cautious'

Announcing its latest rate decision, the bank said that private consumption had been increasing, but only at a modest rate.

Recent data also showed consumer prices - which had experienced a long period of deflation until this year - were barely moving.

"With the recent economic data, the Bank of Japan was unable to force its way in hiking interest rates," said Yasunari Ueno, chief market economist at Mizuho Securities.

"Even the hawks in the policy board may have become cautious," he said.