"The question now is not whether the BOJ could ease on April 27"
- Takeshi Minami, chief economist at Norinchukin Research Institute
The Bank of Japan kept monetary policy on hold Tuesday to counter deflation. The central bank also kept the benchmark rate unchanged between zero and 0.1 per cent.
"The question now is not whether the BOJ could ease on April 27, but what the bank would do in taking further easing steps," said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo.
"Inaction would upset politicians and disappoint markets, possibly sending the dollar below 80 yen."
Japanese stocks edged lower for a sixth straight day on Tuesday.
The Nikkei 225 fell 0.09%, or 8.24 points, to 9,538.02, while the broader Topix slid 0.03%, or 0.26, to 813.43.
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