The Bank of Japan left its short-term policy rate unchanged Friday as it examines how the economy and markets are digesting its most recent interest-rate increase.

The Bank of Japan unanimously decided to keep its policy rate unchanged at 0.25%. Amid growing confidence in achieving its sustainable inflation target, the BoJ will closely watch the impact of FX movements on inflation. The timing of the next hike remains uncertain, but we see a chance of a hike in December.

The decision came as the central bank seeks to wean its economy off the long-held ultra-easy monetary policy and curb the yen’s slide against the U.S. dollar.