The Bank of Japan (BOJ) raised its inflation forecast on Thursday. Still, it maintained ultra-low interest rates, indicating it will remain an outlier among a global wave of central banks tightening monetary policy.

"For the time being, while closely monitoring the impact of COVID-19, the bank will support financing ... and will not hesitate to take additional easing measures if necessary," the BOJ said in a statement announcing the decision.

The BOJ's nine-member board voted 8-1 to keep its short-term interest rate target at -0.1 percent and its 10-year government bond yield target around 0 percent, as expected.

In fresh quarterly projections, the BOJ raised its core consumer inflation forecast for the current fiscal year ending in March 2023 to 2.3 percent from 1.9 percent projected in April.

It predicted core consumer inflation to hit 1.4 percent in fiscal 2023, compared with 1.1 percent in April.

The board cut its economic growth forecast for the current fiscal year to 2.4 percent from a 2.9 percent rise seen three months ago.