Analysts: The strengthening of the yen and uncertainty over tariffs may prompt the Bank of Japan to stand pat this week.

According to Mars Finance, T. Rowe Price's Co-Portfolio Manager for Diversified Income Bond Strategies, Vincent Chung, stated in a report that, given the uncertainty of economic growth, the Bank of Japan is expected to keep interest rates unchanged at this week's meeting. The appreciation of the yen and concerns about the potential impact of tariffs on economic growth may lead the Bank of Japan to postpone further interest rate hikes. The uncertainty of tariffs has increased the risk premium of U.S. assets, and investors must follow potential trade protocols that could lower the risk premium. He added, "If the volatility in the U.S. Treasury market decreases, the long positions in yen from the market's safe-haven buying should exert pressure on the yen's appreciation in the short term."