The Bank of Japan is expected to keep its short-term policy rate at 0.25% during an upcoming two-day policy meeting.

Governor Kazuo Ueda expressed a cautiously optimistic view on the U.S. economic outlook, acknowledging that while optimism is expanding, market instability remains a concern. Ueda emphasized the uncertainty surrounding a potential "soft landing" for the U.S. economy as a significant risk that requires a careful approach to interest rate adjustments. He stressed the importance of further analysis to determine whether the current optimism is sustainable or temporary, indicating that the Bank of Japan has the ability to take its time in evaluating economic risks before making any decisions on rate hikes.