The Bank of Japan concluded its two-day policy meeting Thursday, maintaining rates at 0.25% and continuing to signal its intention to raise rates when the time is right.

“The decision to keep the policy rate unchanged was not a surprise, as many economists, including myself, had anticipated it,” said Hirofumi Suzuki, chief foreign exchange strategist at Sumitomo Mitsui Banking Corp.

Gov. Kazuo Ueda has made it clear over the past few months that any monetary policy moves are dependent on inflation and growth data being aligned with forecasts, and he reiterated that point in comments after Thursday's rate announcement.

“We will scrutinize data available at the time at each policy meeting, and update our view on the economy and outlook in deciding policy,” he said.

In a document released with the announcement of the rate decision, the BOJ described a growing economy that is facing risks.

“There remain high uncertainties surrounding Japan’s economic activity and prices,” the central bank said in its Outlook for Economic Activity and Prices.

The BOJ policy board meeting results were in line with expectations, said Shoki Omori, chief Japan desk strategist at Mizuho Securities.

“The assessment that the economy is recovering moderately was also expected,” he added.

Interest rates in Japan are far below those in other developed countries and were held at or near zero for more than two decades as the central bank fought deflation and a series of recessions. While growth has returned, the debate has turned to whether the economic expansion and inflation achieved are sustainable.

The central bank held its ground and maintained its balanced tone this week even as it faced considerable political and economic pressure and significant uncertainty on the horizon.

Its rate meeting followed the biggest electoral loss in recent history for the Liberal Democratic Party-led coalition, a development that could result in relatively dovish opposition parties gaining some power.

While the BOJ is technically independent, politicians can and often do seek to influence policy.

Prime Minister Shigeru Ishiba has been all over the map on rates and central bank independence as the perils of a weak yen have been weighed against the troubles that might be delivered by higher interest rates.

Among the factors costing LDP seats were inflation and chronically low wages in Japan. The weak yen hurts households as imported goods become more expensive with a weaker currency.

The yen has been buffeted by recent developments, going from around ¥140 to the dollar in mid-September to above ¥153 as the results of the election were announced earlier this week. Japan’s currency strengthened after Thursday's rate announcement and Ueda’s comments while stocks fell.

By 5pm, the yen was in the low ¥152-to-the-dollar range, about 0.72% stronger over the day, while the 225-issue Nikkei stock average was down about 2% after hours.

External political and economic factors could influence the central bank’s decision-making.

“We have seen some positive U.S. data recently,” Ueda said.

But he added that there is still uncertainty on how past rate hikes by the Federal Reserve affect the economy and prices. "We need to monitor developments carefully,” Ueda said.

The U.S. presidential election on Nov. 5 has the potential to rattle investors and have a significant effect on Japanese markets, while U.S. economic data are coming in choppy and might also be relevant to rate decisions in Japan.

“Given the changes in domestic and international political situations and the financial market environment, there are various opinions on the future outlook for monetary policy,” Suzuki said.

U.S. presidential candidates Kamala Harris and Donald Trump are neck and neck, and investors are gaming out possible outcomes.

“A clear Trump win could lead to a further selloff in the Japanese yen, which could be positive for Japanese bank share prices, not least because an overly weak yen increases pressure on the Bank of Japan to raise yen interest rates,” said Michael Makdad, a senior equity analyst at Morningstar.

The BOJ will meet for a policy meeting in December, and again in January. Analysts remain mixed on when exactly a rate increase will occur.