BOJ keeps ultralow interest rates unchanged
Yen falls after BOJ39;s decision, dovish guidance
Core inflation hits 3.1 in Aug, stays above BOJ39;s target
Governor Ueda likely to brief media 0630 GMT

TOKYO, Sept 22 Reuters The Bank of Japan maintained ultralow interest rates on Friday and a pledge to keep supporting the economy until inflation sustainably hits its 2 target, suggesting it was in no rush to phase out its massive stimulus programme.

Markets are focusing on comments from Governor Kazuo Ueda39;s postmeeting briefing for clues on how soon the bank could start raising interest rates from negative territory.

The Japanese yen fell after the decision to around 148.09 per dollar, near the psychologically important 150 level seen as authorities39; lineinthesand for currency intervention.

The decision reflects a lack of confidence among policymakers that wage growth will gather enough momentum to achieve sustained inflation, said Daisaku Ueno, chief currency strategist at Mitsubishi UFJ Morgan Stanley Securities.

As widely expected, the BOJ maintained a 0.1 interest charged on financial institutions39; excess reserves parked with the central bank, and a target for the 10year government bond yield around 0.

It also left unchanged an allowance band of 50 basis point set either side of the yield target, as well as a new hard cap of 1.0 adopted in July.

The BOJ39;s decision contrasts with those of U.S. and European central banks, which in recent meetings have…