(RTTNews) - The Bank of Japan’s Board of Governors on Friday voted to keep the overnight call rate unchanged at 0.30 percent, the BOJ said at the conclusion of its two-day monetary policy meeting in Tokyo.

In a statement accompanying the rate decision, the board maintained its view that the Japanese economy is increasingly sluggish and is expected to remain that way for several quarters. Economic recovery is likely to take some time, the board said, also emphasizing the need to be aware of economic downside risks.

In its previous meeting on October 31, the bank had lowered rates by 20 basis points from 0.50 percent. The vote was a split decision, with the deciding vote was cast by BoJ Governor Masaaki Shirakawa, who elected to go with the rate cut. The split vote was the board’s first since November 2007.

That rate cut was the bank’s first in seven years, and it snapped a strong of 22 consecutive meetings of keeping the rates on hold. The BoJ had kept rates unchanged since a 0.25 percent increase in February 2007 - but with a weakening global and domestic economy, the board felt that it had no choice but to trim rates.

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