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 kept its monetary policy steady Friday, signaling it sees no need to hurry with interest rate hikes as it monitors financial markets after its July increase and hawkish views spooked investors.