The Bank of Japan is expected to keep rates unchanged when its policy board meets this week given political uncertainty related to the start of a new administration and economic uncertainty related to U.S. tariffs.
Prime Minister Sanae Takaichi's focus on easy money might also be a factor.
BOJ Gov. Kazuo Ueda has stressed that the central bank will carefully assess the effects of the U.S. tariff policy on corporate earnings, wages and prices.
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