Nomura expects the Bank of Japan to maintain its current monetary policy rate at its April-end meeting, according to a Wednesday research note.

Despite sustained wage and price increases as indicated in recent surveys, the central bank will likely refrain from immediate rate hikes due to rising economic risks from US tariffs, analysts Kyohei Morita and Uichiro Nozaki said.

The central bank could also lower its real GDP growth forecast for fiscal 2025 to 0.6% from 1.1%, the analysts said.

The adjustment would suggest that Japan's economic growth may fall below its potential rate of around 0.5%, according to the analysts.

The equity research firm also said to look out for central bank governor Kazuo Ueda's post-meeting press conference, where he is expected to address the balance between the central bank's commitment to further rate increases and growing downside economic risks.