By Leika Kihara
TOKYO (Reuters) -The Bank of Japan is expected to keep interest rates steady on Friday, as policymakers seek more clarity on whether the economy can withstand U.S. President Donald Trump’s tariffs and growing signs of weakness in the American economy.
The BOJ’s meeting comes in the wake of the U.S. Federal Reserve’s decision on Wednesday to cut interest rates and signal more reductions to halt any slide in an already weakening labour market.
A downturn in U.S. growth would cloud the BOJ’s rate-hike path by adding strains to Japan’s fragile recovery, which is starting to see exports hit by Trump’s tariffs.
Markets are focusing on Governor Kazuo Ueda’s post-meeting briefing for hints on how soon the BOJ could resume rate hikes, paused since January as policymakers gauge t