The Bank of Japan will likely hold rates when it meets this week, according to analysts, offering relief to markets thrown into turmoil earlier this month by the possibility of monetary tightening.

“Consumption is still weak, and real wage growth is still negative,” said Masamichi Adachi, an economist at UBS Securities. “We believe the BOJ will hold off on a rate hike until consumption recovers.”

Japan's household spending fell 1.8% year-on-year in May, against an expected 0.1% rise, while real wages declined for a record 26 consecutive months through May as price increases ate away at the buying power of paychecks.