Some clouds may be lifting, but the Bank of Japan continues to circle

key takeaways

• Although no one expected the Bank of Japan (BOJ) to raise rates this week, BOJ Governor Ueda Kazuo suggested that the bank may want more clarity before it resumes policy normalization.
• Despite the reduction – though not the elimination – of risks from US-Japan trade friction, the BOJ is still uncertain about the outlook for the real economy and also must navigate domestic political uncertainty, all of which could delay additional rate hikes.