TOKYO (REUTERS) - The Bank of Japan kept monetary policy steady and pushed back again the timing for achieving its 2 per cent inflation target on Thursday (July 20), reinforcing expectations it will lag well behind major global central banks in dialling back its massive stimulus programme.

In a widely expected move, the BOJ maintained the 0.1 per cent interest it charges on a portion of excess reserves that financial institutions park at the central bank.

At the two-day policy meeting that ended on Thursday, it also kept its yield target for 10-year Japanese government bonds around zero per cent.

In a quarterly review of its long-term projections, the central bank cut its inflation forecast for the current fiscal year ending in March 2018 to 1.1 per cent from 1.4 per cent projected three months ago.

The BOJ delayed the timing for achieving its 2 per cent inflation target, saying it would be met sometime during fiscal 2019. In April, it had projected inflation would hit 2 per cent in fiscal 2018.

BOJ Governor Haruhiko Kuroda will hold a news conference at 3.30pm (2.30pm Singapore time) to explain the policy decision.