Filed at 12:34 a.m. ET

TOKYO (AP) -- Japan's central bank has held its key interest rate unchanged at 0.1 percent and upgraded its assessment of the world No. 2 economy, citing improved business sentiment.

The unanimous, and widely expected, decision Wednesday came at the end of the central bank's two-day policy board meeting.

"Japan's economy has started to pick up," board members said in a statement. "Public investment has been increasing, and exports and production have also been rising against a backdrop of progress in inventory adjustments both at home and abroad as well as a recovery in overseas economies, especially emerging economies guaranteed approval cash advance loans."

Japan Central Bank Keeps Interest Rate Unchanged