The Bank of Japan yesterday warned of increasing downside risks for the global economy but held off on further easing, even as European and US peers loosen their credit grip. The central bank said it would maintain its ultra-loose monetary policy, vowing to keep interest rates low at least until the spring of 2020, though governor Haruhiko Kuroda did hint at possible moves next month. But it warned of headwinds including the prolonged trade war between the US and China, and Britain possibly leaving the European Union without a divorce deal.

"Given that, recently, slowdowns in overseas economies have continued to be observed and their downside risks seem to be increasing, the Bank judges that it is becoming necessary to pay closer attention to the possibility that the momentum toward achieving the price stability target will be lost," it said in a post-meeting statement. The statement -- released after a two-day meeting -- did not include a revision to its July inflation outlook, projecting 1.0 percent for the year to March 2020 and 1.3 percent the following year.