The Bank of Japan is set to keep interest rates steady on Friday and signal cautious optimism that the economy will maintain a moderate recovery that would justify raising still-low borrowing costs further. BOJ Governor Kazuo Ueda is likely to offer few clues on when the bank might next raise rates, a decision complicated by a fresh bout of market volatility caused by Prime Minister Sanae Takaichi's decision to call a snap election next month. The central bank is caught between a need to keep yen bears at bay with hawkish communication, without triggering further rises in bond yields on expectations of hefty spending ... (full story)