The U.S. Federal Reserve's decision to pause rather than end its drive to raise interest rates has taken some of the pressure off the Bank of Japan, which is planning rate hikes of its own, according to analysts.
The BOJ must have breathed a sigh of relief at the latest message from the Fed because it left room for resuming rate hikes, said Hideo Kumano, chief economist at Dai-ichi Life Research Institute Inc.
In a statement issued Tuesday, after a one-day meeting of the Federal Open Market Committee, the Fed said the extent and timing of any additional interest rate increases would depend on the outlook for economic growth and inflation.