The Bank of Japan (BOJ) is expected to leave interest rates unchanged at its policy meeting on Sept. 18–19, according to the Nikkei. The central bank will likely keep its overnight call rate at 0.5%, where it has stood since January’s quarter-point hike. That would mark the fifth consecutive meeting without a move.

Board members broadly agree that it is premature to raise rates, and markets also anticipate no change. Policymakers are monitoring the impact of recent U.S. tariffs, particularly on exporters like automakers, and how this affects wages, investment, and Japan’s economy. Deputy Governor Ryozo Himino recently warned that tariff risks may be greater than previously assumed and warrant close attention.

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Little market surprise is expected;

• yen reaction likely muted unless BOJ signals tariff-driven downside risks
• for Japanese equities, exporter shares may stay cautious as automakers reassess guidance under tariff pressure
• for fied interst, steady BOJ policy reinforces divergence with Fed; global yield spreads remain in focus.