InsideJapan News Network

The central bank of Japan has voted to keep the nation's interest rate steady, in a widely anticipated move.

Interest rates will now remain at 0.1 per cent in a bid to help boost the country's economy, which is currently recovering from its deepest recession since the end of the second world war.

All eight members of the bank's board voted to keep the rate constant.

The interest rate in Japan has not changed since December 2008.

In a statement, the bank noted that Japan is still struggling with the impact of deflation and price fluctuations.

Deflation has long been an issue in Japan, which battled with falling prices all through the 1990s. It can cause problems for a nation's economy as it often has a negative impact on consumer and business sentiment, leading to declines in purchases.

"It was confirmed at the meeting that, in the conduct of monetary policy, the bank would aim to maintain the extremely accommodative financial environment," the statement continued.

Written by Kimberley Homer.