The Bank of Japan is sticking with its massive monetary easing, despite growing pressure to raise interest rates as the yen weakens.

BOJ board members are wrapping up a two-day policy meeting on Friday.

They decided to keep the short-term interest rate in negative territory and will also continue buying government bonds to hold long-term rates around zero percent.

The board also raised its inflation forecast for this fiscal year, which ends next March.

The Bank now expects prices to increase by 2.9 percent, which is higher than the 2.3 percent it announced in July.

This is the median forecast for the consumer price index and excludes fresh foods.

The upward revision came as prices for energy and raw materials rise and the yen rapidly weakens.