AsianFin -- The Bank of Japan (BOJ) left interest rates unchanged on Tuesday and announced it would slow the pace of reducing its bond purchases starting next fiscal year, underscoring its cautious approach to unwinding ultra-loose monetary policy.

As widely anticipated, the central bank kept short-term interest rates steady at 0.5% following a unanimous decision at the conclusion of its two-day policy meeting. The move suggests policymakers remain wary of tightening too quickly amid lingering uncertainties around inflation and growth.