The Bank of Japan plans to hold interest rates steady at its upcoming April policy meeting, sources indicate.
Officials prefer caution as uncertainty clouds the economic outlook and complicates near-term policy decisions.
Policymakers aim to assess external risks before committing to any immediate rate increase.
Markets have already reduced expectations for an April hike, reinforcing the case for a pause.
Despite holding rates, the BOJ may signal readiness for future tightening, potentially as early as June.
Rising inflation and higher energy costs continue to pressure Japan’s economic stability and policy direction.
The current policy rate remains below neutral levels, while real borrowing costs stay negative.
Analysts expect the central bank to maintain a hawkish stance, keeping options open for upcoming meetings.
Updated forecasts may show slower growth but higher inflation, supporting gradual normalization of monetary policy.
