The Bank of Japan kept interest rates steady and sharply cut its growth forecasts on Thursday, suggesting uncertainty surrounding U.S. tariffs and the hit to exports could keep policy in a holding pattern for some time.

The Japanese central bank’s governor and other officials have voiced concerns about rising uncertainty over the impact of U.S. trade policy and how other countries will respond.

The Bank of Japan has slashed its economic growth forecasts for 2025 and 2026, blaming “extremely high uncertainties” over trade, in a move that raises doubts about future interest rate rises. Japan’s central bank released a quarterly update to its forecasts alongside a unanimous decision by its policy board to keep the overnight call rate at “around 0.