The central bank projected inflation would stay roughly on course to hit its 2% target in coming years, a sign that risks from U.S. tariffs could delay, but not derail, its rate hike plans.

The Bank of Japan is expected to hold policy settings steady for a second straight meeting on Thursday in the face of intensified uncertainties due to US tariff measures while sticking with its stance on gradually lifting benchmark rates for now.

The Bank of Japan kept its key short-term interest rate unchanged at 0.5% during its May meeting, maintaining the highest level since 2008 and in line with market expectations.  The BOJ has now held p