The Bank of Japan Policy Board agreed Thursday to keep its benchmark interest rate at 0.5 percent as the U.S. subprime mortgage crisis earlier this month added to uncertainties over the Japanese economy.

The decision was made in an 8-1 vote with board member Atsushi Mizuno the lone voice against keeping the rate unchanged. Mizuno also voted against maintaining the rate in the July meeting.

Before the market turmoil earlier this month, most watchers had predicted the central bank would raise the short-term rate to 0.75 percent at the two-day Policy Board meeting that ended Thursday.