BOJ Set to Stand Pat as Markets Eye Faster Rate Hikes

The Bank of Japan is expected to keep interest rates unchanged on Friday as it assesses the impact of last month's increase to 1 per cent, the highest in 31 years.

All 52 economists surveyed by Bloomberg forecast the BOJ will hold its benchmark rate steady at the end of a two-day gathering.

The spotlight will be on updated economic forecasts and Governor Kazuo Ueda's press conference in the afternoon.

Markets have grown increasingly convinced that authorities could conduct another hike by October, with some BOJ officials believing underlying inflation is finally coming close to reaching the 2 per cent target set more than 13 years ago.