The Bank of Japan kept interest rates steady on Tuesday and decided to decelerate the pace of its balance sheet drawdown next year, signaling its preference to move cautiously in removing remnants of its massive,

The Bank of Japan left its benchmark rate unchanged and unveiled a plan to slow its withdrawal from the bond market from next year in a sign of caution following heightened market volatility.

The Bank of Japan skipped a rate increase on Tuesday due to economic uncertainties related to U.S. tariff policy. It also said that it would adjust its Japanese government bond purchasing program in a way that could help shore up the bond market.