Bank of Japan likely to keep policy rate steady, lift growth forecasts

TOKYO - The Bank of Japan is likely to keep its benchmark interest rate steady at a two-day policy meeting from Thursday, opting to examine the impact on the economy of the previous hike to a 30-year high and a falling trend in the yen that has alarmed Japanese authorities.

The Policy Board also faces surging Japanese government bond yields -- a factor that would usually be expected to help stem the yen's slide, especially against the U.S. dollar -- as financial markets expect more fiscal stimulus under the government of Prime Minister Sanae Takaichi.