The Bank of Japan maintained ultra-low interest rates on Thursday but said risks around the U.S. economy were somewhat subsiding, signalling that conditions are falling into place to raise interest rates again.

The Bank of Japan kept its benchmark interest rate unchanged while sticking to its view that it’s on track to achieve its inflation target, an outlook that points to the possibility of another rate hike in the coming months.

“The Bank of Japan (BOJ) at its scheduled Monetary Policy Meeting (MPM) on 31 Oct, took a unanimous decision to keep its monetary policy guidelines for money market operations unchanged. This was in line with market expectations but against our projection for a 25-bps rate hike.”

The Bank of Japan’s governor struck a less cautious tone about the outlook as the central bank delivered a widely expected rate hold and reaffirmed that it’s on track for stable inflation and economic growth.

The Bank of Japan maintained ultra-low interest rates on Thursday but said risks surrounding the U.S. economy were somewhat subsiding, signalling that conditions are falling into place to raise interest rates again.