The Bank of Japan kept its main interest rate unchanged on Thursday, as widely expected, warning of “high uncertainties surrounding Japan’s economic activity and prices”.The decision comes amid market uncertainty ahead of US presidential elections on November 5 and following Japanese polls on Sunday that was the worst outcome for the ruling party since 2009.The BoJ, which hiked interest rates in March for the first time in 17 years, said on Thursday it will maintain the key lending cost at 0.25 percent.In an outlook report, the bank said there “high uncertainties surrounding Japan’s economic activities and prices”. “Japan’s economy is likely to keep growing at a pace above its potential growth rate, with overseas economies continuing to grow moderately and as virtuous cycle from income to spending gradually intensifies against the background of factors such as accommodative financial conditions,” it said.The BoJ said it expected inflation of 2.5 percent for the current fiscal year to March 2025 before moderating to 2.0 percent in the following two years.The Japanese vote on Sunday saw the ruling coalition of Prime Minister Shigeru Ishiba lose its majority in the lower house for the first time since 2009.This will likely force Ishiba into a minority government that would need support from other parties to pass legislation.Businesses and economists worry that as concessions to other parties, Ishiba, 67, will offer tax cuts and higher spending, and go slow on reforms needed to improve Japan’s competitiveness.The BoJ was for a long time an outlier among major central banks, sticking to an ultra-loose monetary policy in an attempt to see demand-driven inflation of two percent fuelled by wage increases.The BoJ raised borrowing costs in March for the first time since 2007 and again in July, signalling that more were on the cards.Before being appointed leader of the Liberal Democratic Party, Ishiba openly backed this continuing. But after the yen surged and stocks tumbled following his appointment he rowed back.Many in the opposition though want a pause in order to avoid higher interest rates for consumers and businesses, even if this means a weaker yen and with it higher import prices.Higher interest rates will also make servicing Japan’s colossal debt pile — which accounts for around 250 percent of gross domestic product (GDP) — more expensive.The US Federal Reserve kicked off its rate-cutting cycle in September with a large cut of half a percentage-point, noting the progress made in bringing inflation down toward its long-run target of two percent. But the data published in the three weeks since the rate decision was announced have been “uneven,” Fed governor Christopher Waller said in mid-October.

Stock markets largely fell Wednesday as investors digested a mixed bag of economic data and corporate reports, while bitcoin traded close to its record high ahead of the US presidential election.The three main US stock indices lost ground while major European markets closed sharply lower as well.Google-parent Alphabet was up almost three percent in New York after reporting positive results Tuesday, but that was outweighed by disappointing results and guidance from tech company AMD, down more than 10 percent, and drugmaker Eli Lilly, down more than six percent.  Microsoft shares gained 0.4 percent and Facebook-parent Meta lost 1.2 percent in after-hours trading, following earnings report after the closing bell.On the economic front, the US economy grew at a healthy 2.8 percent annual rate in the third quarter, even if it undershot analyst expectations and slowed slightly from the previous three months.”While the initial Q3 GDP report missed economists’ expectations, the miss was minor and reaffirms that the US economy remains on solid footing,” according to eToro analyst Bret Kenwell. On Thursday, the Federal Reserve’s favored inflation measure will be released, while the monthly labor market report comes Friday.In the eurozone, Paris and Frankfurt closed down more than one percent. “Investors are in no mood to increase their exposure to equity markets, given the lack of a clear lead from the US where consolidation seems to be the order of the day,” said David Morrison, analyst at Trade Nation.The eurozone economy grew a better-than-expected 0.4 percent in the third quarter, the bloc reported Wednesday. But the spurt was largely due to one-off factors such as the Olympics, and next quarter’s report may not be so rosy, said Fawad Razaqzada, analyst at City Index. “Recent forward-looking surveys have been far from great, suggesting that the eurozone economy remained sluggish at the start of Q4,” he said. Outside the eurozone, London’s stock market dropped, though less than Paris and Frankfurt, as the UK’s new Labour government said it would raise taxes by 40 billion pounds and that the deficit will shrink next year.UBS shares slumped more than four percent after the Swiss bank highlighted a gloomy economic outlook despite making healthy profits in the third quarter.Asia’s top indices closed mostly down, while in foreign exchange the dollar was mixed against main rivals.Bitcoin steadied, a day after striking just shy of its all-time peak of $73,797.98 achieved in March.A recent surge in the price of bitcoin is seen as a bet on a Republican victory in next week’s US vote, as Donald Trump has emerged as the pro-crypto candidate.The outcome at the polls remains uncertain for many analysts, however, helping haven investment gold to a fresh record high of $2,789.86 an ounce Wednesday. The economic programmes of both candidates are expected to add greatly to the US debt load.Oil prices rebounded after a surprise decline in US petroleum reserves, even though concerns persist about whether there will be enough takers for an expected increase in global crude production next year.”It seems as if oil prices are ignoring improving economic data in the US and stimulus efforts from China to revive its struggling economy,” said Daniela Sabin Hathorn, senior market analyst at Capital.com.- Key figures around  2035 GMT -New York – Dow: DOWN 0.2 percent at 42,141.54 points (close)New York – S&P 500: DOWN 0.3 percent at 5,813.67 (close) New York – Nasdaq Composite: DOWN 0.6 percent at 18,607.93 (close) London – FTSE 100: DOWN 0.7 percent at 8,159.63 (close)Paris – CAC 40: DOWN 1.1 percent at 7,428.36 (close)Frankfurt – DAX: DOWN 1.1 at 19,257.34 (close)Tokyo – Nikkei 225: UP 1.0 percent at 39,277.39 (close)Hong Kong – Hang Seng Index: DOWN 1.6 percent at 20,380.64 (close)Shanghai – Composite: DOWN 0.6 percent at 3,266.24 (close)Euro/dollar: UP at $1.0861 from $1.0816 on TuesdayPound/dollar: DOWN at $1.0861 from $1.3010Dollar/yen: DOWN at 153.35 yen from 153.57 yenEuro/pound: UP at 83.75 pence from 83.13 penceBrent North Sea Crude: UP 2.0 percent at $72.55 per barrelWest Texas Intermediate: UP 2.1 percent at $68.61 per barrel