The prices of goods in Japan are not markedly increasing

The decision had been widely expected, with the bank facing political pressure not to raise interest rates too quickly with inflation still subdued.

Last month's quarter-point rise was only the bank's second increase in more than six years.

In July last year, the bank raised rates to 0.25% ending six years of zero interest rates.

The March decision to keep rates on hold was unanimous, the bank said.

Japan's interest rates are still well below the benchmark rates of 5.25% in the US and 3.75% in the eurozone.

Moderate expansion

Bank of Japan governor Toshihiko Fukui said the assessment and outlook for the economy was largely unchanged.

"The Japanese economy continues to expand moderately, and there is a high probability that the virtuous cycle of production, income and spending will continue to support growth," he said.

Mr Fukui also suggested that the recent global share market sell-off had been a necessary correction after sharp rises.