On Tuesday, the Bank of Japan changed up its consumer price forecast for the financial year starting in April, a step that shows the effect of recent rises in commodity prices.

The central bank overall has maintained its economic growth forecast for financial years 2011 and 2012, from its projections which were done three months back.

On the basic economy it kept its assessment that while the economy was showing signs of a reasonable recovery; the improvement seems to be faltering.

It reduces its assessment on exports, saying they were not strong, somewhat.

The central bank kept interest rates intact at a range of 0 to 0.1 percent and put on hold on any new policy initiatives by a unanimous vote.

Masaaki Shirakawa ,Governor will be holding an embargoed news conference with his comments likely to come out sometime after quarter post four pm (0715 GMT).

The Bank of Japan issues its long-term price and economic forecasts in the month of April and October in each year, and reviews them in the month of January and July.

Last week, the government raised its economic evaluation for the first time in seven months, pointing out signs of output bottoming out and exports backed by good demand in Asia.

Analysts polled done by Reuters predict that the nation's economy will expand reasonably in this year following an expected mild contraction in the final quarter of 2010, as exports climb up on demand from fast-growing developing economies.

That will emphasize the BOJ's opinion that Japan's economy will recover fairly around the spring and in turn will ease the grinding deflation that is troubling Japan.