Bloomberg expects BOJ to hold key rate steady in light of global economic risks

52 economists polled by Bloomberg suggest that the Bank of Japan (BOJ) is likely to keep its current benchmark interest rate when it meets on March 19. Mounting trade tensions are amplifying market worries regarding the global economic outlook. That’s why experts anticipate the borrowing costs in the Asian country to hold steady at 0.5%.

Global GDP growth has slowed significantly since the BOJ's last rate hike in January under Governor Kazuo Ueda. This meeting took place shortly after Donald Trump returned to the White House. He then announced his grand plans to impose high tariffs on major US trading partners, the agency reported.

At the upcoming meeting, investors will be closely watching for hints on Ueda's next rate move. The Bank of Japan's current protectionist stance and its impact will also be in the market spotlight. Bloomberg thinks Ueda is likely to hold off on raising borrowing costs due to the geopolitics.