BOJ keeps shortterm rate steady at 0.25 as expected
BOJ upgrades view on consumption
Gov Ueda says domestic economy on track, warns of U.S. risk
Remarks weaken yen, heighten uncertainty on rate hike timing

TOKYO, Sept 20 Reuters The Bank of Japan kept interest rates steady on Friday and its governor said it could afford to spend time eyeing the fallout from global economic uncertainties, signalling it was in no rush to raise borrowing costs further.

The dovish comments pushed down the yen, heightening uncertainty over whether the BOJ could hike interest rates again this year, as many market players had predicted.

BOJ Governor Kazuo Ueda said Japan39;s economy was moving in line with forecasts, with rising wages lifting consumption, and keeping inflation on track to durably hit the bank39;s 2 target.

But volatile financial markets and uncertainty over whether the U.S. economy can manage a soft landing required the BOJ to spend more time determining whether more rate hikes were needed, he said.

The outlook for overseas economic development is highly uncertain. Markets remain unstable. We need to scrutinise such developments carefully for the time being, Ueda told a news conference after the BOJ39;s widely expected decision to keep shortterm rates steady at 0.25.

The yen39;s recent rebound has also moderated upward pressure on import costs, and diminished the risk of an overshoot in domestic inflation, he said. As such, we can afford to spend some time in making…