TOKYO, Oct 31 (Reuters) - The Bank of Japan kept interest rates steady on Thursday and roughly maintained its forecast that inflation will hover near its 2% inflation target in coming years, signalling its readiness to continue rolling back its massive monetary stimulus.
As widely expected, the nine-member board decided to keep the BOJ's short-term policy rate unchanged at 0.25% by a unanimous vote.
"The BOJ needs to pay due attention to the future course of overseas economies, particularly the U.S. economy, and developments in financial markets," the BOJ said in a quarterly outlook report.
BOJ Governor Kazuo Ueda is expected to hold a press conference at 3:30 p.m. (0630 GMT) to explain the policy decision.
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