The BoJ left its benchmark interest rate unchanged at-0.1 per cent and its 10-year yield target around 0 per cent, in line with market expectations.
The Bank of Japan will extend financing support for the COVID-19 epidemic until March 2022.
Bank of Japan Governor Toshihiko Kuroda is expected to hold a press conference in Tokyo around 3:30 (2:30 Beijing time).
Market reaction:
The Tokyo Stock Exchange Index fell 0.6%, extending its decline after the Bank of Japan's latest policy decision was announced. Carmakers and banks are the biggest drag on the benchmark index.
The Nikkei 225 index rose 0.1%, giving up an earlier rise of 0.4%.
The yen erased earlier losses against the dollar.
Previously, the BoJ kept policy interest rates unchanged and kept the 10-year JGB yield target at about 0 per cent. The epidemic support program will be extended beyond September 2021, and new lending measures will be introduced within the year. The Bank of Japan will launch new financing measures based on climate change in 2021.