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

The Bank of Japan kept interest rates steady on Friday and maintained its view the economy remained on track for a moderate recovery. In a widely expected move, the central bank left unchanged its overnight call rate target at 0.

The Bank of Japan unanimously maintained its key short-term interest rate at around 0.25% to 0.1% at its September meeting, as expected, after raising it in July. The Nikkei 225 Index

The Bank of Japan left interest rates unchanged on Friday, after a decision to hike them in July pushed the yen sharply higher and fuelled turmoil across world markets.