The Bank of Japan on Thursday trimmed its growth and inflation expectations for the current fiscal year, as a slate of tepid data highlight weakness in the world's number three economy.

In a semi-annual report, the BoJ said it expects gross domestic product to expand 2.0 percent in the year to March 2016, while the inflation rate would come in at 0.8 percent, down from an earlier estimate of 2.1 percent and 1.0 percent respectively.