The decision comes a day after the U.S. Federal Reserve cut rates by 25 basis points, bringing the federal funds rate to 4.25%-4.5%.

The Bank of Japan kept interest rates unchanged on Thursday and its governor offered few clues on how soon it could push up borrowing costs, sending the yen and bond yields tumbling on fresh doubts over the near-term chances of a rate hike.

The Bank of Japan held its policy interest rate steady on Thursday as it waits for uncertainties abroad to clear further and for more evidence of economic recovery at home.

Just over a half of economists polled by Reuters last month expect the BOJ to raise interest rates in December. About 90% forecast the BOJ to have hiked rates to 0.5% by end-March. By contrast, markets are currently pricing in approximately a 30% probability of a rate increase in December.

Bank of Japan holds rates and shifts to cautious tone as economic risks rise on linkedin (opens in a new window)

The decision comes a day after the U.S. Federal Reserve cut rates by 25 basis points, bringing the federal funds rate to 4.25%-4.5%.

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