TOKYO -- The Japanese central bank on Friday maintained its policy rate unchanged after wrapping up its two-day policy meeting, which sent the Japanese yen to its fresh 34-year low past the 156 line.

The Bank of Japan (BOJ) decided to guide short-term interest rates in a range of zero and 0.1 percent, a month after it ended the negative interest rate policy in its first rate hike in 17 years.

The announcement weakened the country's currency against the U.S. dollar to the lowest level since May 1990, raising the risk of forex intervention by Japanese authorities.

The BOJ, which also maintained its policy regarding government bond buying, said the country's core inflation, which excludes volatile fresh food, will be around 2 percent until fiscal 2026, and that accommodative financial conditions will continue for the time being despite inflation nearing its target.

According to a new report released by the BOJ upgrading its inflation outlook for fiscal 2024 and 2025, core consumer prices, excluding fresh food, are forecast to rise 2.8 percent, rather than 2.4 percent, in the year to next March, and then 1.9 percent, instead of 1.8 percent, the following year.

The key gauge of inflation is forecast to increase by 1.9 percent in fiscal 2026, the final year of the latest forecast period, said the report.