TOKYO (Kyodo) -- The Bank of Japan left interest rates unchanged Thursday in a move widely expected by the market due to growing uncertainties over the U.S. economy under incoming President Donald Trump and a lack of clarity over wage trends at home.

The central bank decided to keep its key short-term rate on hold at around 0.25 percent at the end of a two-day policy meeting. The policy rate has been kept at that level for the three consecutive meetings.

The bank's Policy Board is examining potential impacts on global financial markets and the U.S. economy from Trump's policies, especially his protectionist approach to international trade as he has pledged to raise tariffs on imports.

The BOJ is also waiting to see whether the current wage momentum in Japan continues into next year, as some smaller firms have struggled to pass on higher costs to consumers.

Eight of the nine board members voted in support of Thursday's decision, with Naoki Tamura opposing it and proposing to raise the overnight call rate to around 0.5 percent to address upside risks to inflation.

The BOJ had sent mixed signals about a possible rate hike ahead of the meeting.

Governor Kazuo Ueda said in an interview published in late November the next hike is "nearing" given the recent economic data. But he also said he would like to examine if wage momentum remains strong, while airing concerns about the U.S. economic outlook.

Ueda will hold a press conference later in the day to explain the BOJ's latest vote.

Japan's core consumer prices, a key economic indicator for inflation monitored closely by the BOJ, have been at or above the bank's 2 percent target since April 2022.

BOJ board members have repeatedly said the bank will tighten its monetary policy further if it confirms the economy and prices are moving in line with expectations.

Hours before the BOJ's decision, the U.S. Federal Reserve cut its benchmark interest rate for a third straight meeting but suggested there may be fewer reductions in borrowing costs next year amid rising inflation risks.

The move by the U.S. central bank prompted buying of the dollar in the currency market on a view that U.S. interest rates will be kept at an elevated level for longer. The yen, which had been already under pressure, met selling in a development that the BOJ sees as an upside risk to inflation.

With the BOJ standing pat on interest rates, the Japanese currency further weakened to the 155 range against the dollar in Tokyo trading, a level unseen since late November.

Under Ueda, the BOJ has been overseeing a shift away from a decade of unorthodox monetary easing. He took the helm in April 2023.

The bank ended its negative rate policy in March in its first rate increase in 17 years. It then raised rates in July to around 0.25 percent from the range of zero to 0.1 percent.