TOKYO (AFP) - The Bank of Japan on Friday boosted its inflation and economic growth projections for the world's third-largest economy as it eyes an end to years of deflation.

The report, which came as the BoJ stood pat on new policy measures, estimated 2.9 per cent growth in the economy for the fiscal year to March, up from an earlier 2.3 per cent projection made in January. It also tipped inflation to hit 0.7 per cent, also up from an earlier 0.4 per cent projection.