The Bank of Japan stands still, Prime Minister Shizuka Kuri will resign, intensifying uncertainty.

After Prime Minister Shinzo Abe announced his resignation earlier this month, the Bank of Japan maintained its benchmark interest rate on Friday in an attempt to reduce economic and political uncertainty. Following a two-day meeting held in Tokyo, the Bank of Japan issued a statement stating that the policy rate of 0.5% would remain unchanged. 50 economists surveyed by the media unanimously expected this result. It was widely anticipated that the Bank of Japan would not take action, as speculation swirled over who would succeed Abe. Earlier sources indicated that, from an economic perspective, even if Japan successfully solidified its trade agreement with the United States, Bank of Japan officials were still evaluating the impact of U.S. tariffs at home and abroad. The yen briefly rose 0.4% against the dollar to 147.38, bond futures fell 53 points to 136.03 at one point. Following the Bank of Japan's mention of a plan to reduce ETF holdings, the yield on Japan's benchmark 10-year government bonds rose 3.5 basis points to 1.63%. Investors will be watching Bank of Japan Governor Kuroda Haruhiko's press conference in the afternoon to understand when the Bank of Japan may raise interest rates. According to surveys, most observers expect the Bank of Japan to raise its benchmark interest rate before January next year. The Liberal Democratic Party will hold a leadership election on October 4, and analysts are speculating on who will succeed Abe. One leading candidate, Seiko Noda, supports stimulus measures and may prefer a more cautious approach from the Bank of Japan towards raising interest rates. Another candidate, Minister of Agriculture, Forestry and Fisheries, Yoshiro Mori, may continue the current government's stance and support raising interest rates.