Moody's Analytics stated in a report that the Bank of Japan is expected to maintain its short-term policy rate unchanged at 0.5% on Friday, as trade risks and domestic economic weakness cast shadows over the outlook. The firm noted that better-than-expected growth in the first half and yen weakness would make rate increases possible, but given declining exports and industrial output along with struggling consumer spending, the Bank of Japan may temporarily hold steady. Moody's anticipates the Bank of Japan will raise rates in January next year, though it believes a rate hike could also occur later this year.