India, Jan. 23 -- The Bank of Japan retained its key interest rate following a quarter-point hike in December, and raised its economic growth outlook citing the effects of government's stimulus package.
The policy board, headed by Ueda Kazuo, voted 8-1 to maintain the uncollateralized overnight call rate at around 0.75 percent.
The rate had previously been increased by 25 basis points in December, taking it to the highest level since 1995.
The decision came after Prime Minister Sanae Takaichi set the stage for a snap election on February 8, and pre-election fiscal giveaways hit both JGBs and the yen.
At the meeting, BoJ board member Takata Hajime advocated a rate hike of 25 basis points saying that price stability target had been more o...