The BOJ governor said it had kept Japan's long-term interest rates from joining the uptrend in global yields and was helping the economy overcome stagnation.
Haruhiko Kuroda also shrugged off criticism that his 2% inflation target was too ambitious, arguing that there was enough policy ammunition to fend off future shocks to the economy only by accelerating price growth to its target.
The Bank of Japan has closed a tumultuous year for monetary policy with an upgrade to its economic assessment, while keeping its negative rates, yield-curve and asset-purchase programs unchanged.
Stating that the economy continues to recover moderately as a trend, the central bank signaled its conviction that a generally weak yen and a rebound in overseas demand will lift prospects for a solid recovery.
Japan's parliament has ratified the Trans-Pacific Partnership, a mostly symbolic step because of opposition by President-elect Donald Trump that is forcing Tokyo to abandon the current trade agreement.
Assuming he carries out his pledge, Japan has several options: pursue the TPP without the U.S., negotiate a two-way trade deal with the U.S. or prioritize free trade with other countries.
Japan's economy grew much slower than initially estimated in Q3, recording an annualized 1.3% expansion instead of a preliminary reading of 2.2%, as capital expenditure dried up and companies ran down inventories.
The government's projection for the overall size of the economy rose, however, thanks to its adoption of a new base year and incorporation of international accounting standards.
Japan's core consumer prices marked their eighth straight month of annual declines in October, illustrating the sheer scale of the BOJ's struggle to beat deflation and stagnant growth with diminishing policy options.
The nationwide core consumer price index, which includes oil products but excludes volatile fresh food costs, fell 0.4% from a year earlier, keeping policymakers under pressure.
Japan's Shinzo Abe will meet Donald Trump today in NY, making him the first foreign leader to meet the incoming American President, as the BOJ goes on the defensive, buying JGBs in a bid to offset rising treasury yields.
Governor Haruhiko Kuroda said he would not allow market pressure from the U.S. to interfere with Japanese monetary policy and does not need to move in tandem with the Federal Reserve.
Japan's economic growth handily beat expectations in the July-September period, expanding for a third straight quarter as exports recovered, but weak domestic activity cast doubt on hopes for a sustainable recovery.
While GDP grew at an annualized 2.2% pace, household spending and capital investment were flat on quarter, despite efforts by Prime Minister Shinzo Abe to get companies to spend more of their cash piles.
Markets in Asia open lower as investors digest a strong showing by Donald Trump in the early results of the U.S. election. There's still a lot of votes to be counted. but Trump is outperforming in almost all of the battleground states.
U.S. stock futures set the tone by diving as the odds of a Trump presidency increased dramatically over the course of just an hour.
Nikkei -3.7%; Shanghai -0.60%; Hang Seng -2.50%; Australia ASX 200 Index -2.47%. South Korea Kospi -2.74%.
The Reserve Bank of Australia kept interest rates unchanged today at 1.5%, indicating what analysts called a "wait and see" approach to future monetary policy easing despite a run of soft inflation figures.
The Bank of Japan also held rates and left the pace of bond purchases unchanged, but cut its core consumer inflation forecast for the year ending March 2018 to 1.5% from 1.7%.