Bank of Japan expected to stand pat on interest rates
Analysts say the central bank is likely to remain cautious following the trade deal with the US and as consumer prices remain stubbornly high.
The BOJ has stood pat on its policy rate for three consecutive meetings since March. This was amid uncertainties surrounding Japan-US tariff talks.
BOJ Deputy Governor Uchida Shinichi said the trade agreement announced last week by Tokyo and Washington may help ease some of those concerns.
But he added that the hard data is not yet available to measure how the deal will affect the Japanese and other economies.
BOJ officials agree that more time is needed to gauge the real impact of the tariff agreement on corporate profits and personal consumption.
In the meeting this week, the BOJ will also give its economic outlook through fiscal 2027.
The bank has indicated it will consider raising interest rates if the economy and prices move in line with forecasts.
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