The Bank of Japan left its short-term policy rate unchanged Friday as it examines how the economy and markets are digesting its most recent interest-rate increase.

"The upgrade in the BOJ's consumption assessment shows it is becoming increasingly convinced that things are on track, with rising wages pushing up household income and spending," said Naomi Muguruma, chief bond strategist at Mitsubishi UFJ Morgan Stanley Securities.

The yen fell after Governor Kazuo Ueda indicated the Bank of Japan isn’t in a hurry to increase interest rates again after hikes in March and July. Most Read from BloombergAOC Proposes $30 Billion Social Housing AuthorityThe Moonshot Plan to Eliminate Deaths on America’s RoadsCalifornia’s Anti-Speeding Bill Can Be a Traffic Safety BreakthroughNew York City’s Transit System Plans $65.