As anticipated, the central bank of Japan maintained its monetary stimulus program of printing JPY80 trillion (US$659 billion) annually to help fuel the market and the economy, on Tuesday at the end of its two-day policy meeting.

The Bank of Japan (BOJ) also forecasted inflation to remain at zero for the meantime.

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"Depending on oil price moves, we can't rule out the possibility that core consumer prices will fall slightly year-on-year," said BOJ Governor Haruhiko Kuroda.

However, he mentioned that better wages and revived economic growth could support inflation expectations. Kuroda said given the sharp drop in oil prices, he did not think the slowdow in inflation would have a direct affect on the broad price trend.

Given this, he reiterated the BOJ's inflation goal endures. They still aim to achieve their 2 percent inflation target as soon as possible, but just within two years, he added.

Still, many analysts remain skeptical of inflation recovering as quickly as the BOJ hopes.

Hiroki Muto, Sumitomo Mitsui Asset Management senior economist shares this sentiment"Given that Japanese stocks are doing well, there's no need to ease policy now." And then concluding, "However, the BOJ will probably have to push back its two-year timeframe when it updates its forecasts in October, which will raise questions about monetary easing."

The BOJ Governor insists that we would see inflation rebounding in the latter half of the year when companies hike wages and the oil price collapse last year loses its impact on the market.

Japan's largest companies are expected to divulge their plans for wages, after their yearly discussion with the labour unions on Wednesday. These talks and their outcomes are essential to Prime Minister Abe's plans to pull Japan out of its deflationary state in the long term.

Japan's biggest firms will announce wage plans following annual talks with labour unions, the results of which will be key to the success of premier Shinzo Abe's push to drive Japan sustainably out of deflation.

The central bank believes businesses have had a great opportunity to reel in big profits following the weakening yen, which could in turn drive up regular wages and help boost consumption in the market.

TagsBank of Japan, inflation, stimulus program