The Bank of Japan kept interest rates steady on Wednesday and warned of heightening global economic uncertainty, suggesting the timing of further rate hikes will depend largely on the fallout from potentially higher U.

Japan's core inflation hit 3.0% in February and an index stripping away the effect of fuel rose at the fastest pace in nearly a year, a sign of broadening price pressure that reinforces market expectations of further interest rate hikes.

Japan’s consumer inflation slowed slightly in February due to energy subsidies but maintained the uptrend keeping interest-rate hike expectations intact.

Japanese inflation eased in February, government data showed Friday, with prices excluding fresh food rising 3.0 percent year-on-year in the world's fourth-largest economy.