TOKYO (REUTERS) - The Bank of Japan kept monetary policy steady on Thursday and maintained a cautiously optimistic view on the economy, signalling that no expansion of monetary stimulus was forthcoming in the near future.

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.

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

After more than three years of huge asset purchases failed to accelerate inflation to its 2 per cent target, the BOJ revamped its policy framework last September to one targeting interest rates.