The BOJ raised its short-term interest rate to 0.5% in January in the belief the economy was on the cusp of sustainably achieving its 2% inflation target. While Ueda has signalled the BOJ's readiness to keep raising rates, Trump's tariffs have complicated its decision on when and how far it can hike.

The Bank of Japan is expected to hold policy settings steady for a second straight meeting on Thursday in the face of intensified uncertainties due to US tariff measures while sticking with its stance on gradually lifting benchmark rates for now.

The Bank of Japan kept its key short-term interest rate unchanged at 0.5% during its May meeting, maintaining the highest level since 2008 and in line with market expectations.  The BOJ has now held p