According to a Wall Street Journal analysis, the Bank of Japan will announce its interest rate decision and release updated economic forecasts on Thursday. Markets generally expect it to hold interest rates steady again, while continuing to signal its readiness to resume monetary tightening when the time is right. One of the biggest uncertainties currently facing the Bank of Japan is the shifting political landscape in Japan. Given the newly appointed prime minister's support for expansionary economic policies, investors believe that rate hikes may be delayed. Meanwhile, while the US-Japan trade agreement has improved the trade outlook somewhat, Bank of Japan officials are still waiting to see the full impact of higher tariffs on the Japanese economy. Regarding the economic outlook, the Bank of Japan is unlikely to make significant revisions to its quarterly growth and price forecasts, but it is becoming increasingly cautious about inflation risks.