Tokyo  - Japan's central bank on Friday decided, as was widely expected, to keep its key interest rate unchanged at 0.1 per cent.

At the same time, the Bank of Japan (BoJ) upgraded its assessment of the country's economy for the third month running. The world's second-largest economy was improving because of recovering exports and fiscal stimulus measures, the bank said.

"Japan's economy is picking up mainly due to various policy measures taken at home and abroad," the BoJ said. Exports, a key motor of Japan's economy, and production are rising thanks to a recovery in emerging economies, it added.

Economists, however, warned that the recovery was not driven by a recovery of domestic consumption. (dpa)