Global central banks are in a holding pattern, waiting for the Federal Reserve to pull the trigger and raise interest rates.

On Tuesday, the Bank of Japan left interest rates unchanged and in negative territory and extended the time frame of when it expects to reach its 2% inflation target.

"The Bank of Japan has been explicit -- they're waiting for the Fed to do the job for them," said Michael Ingram, a market analyst with BGC Partners in London.

The Bank of Japan also maintained its bond stimulus program with purchases totaling ¥80 trillion ($765 billion) per year. It now expects inflation inch closer to 2% in March 2019, compared to its previous forecast of March 2018. 

Japan's Nikkei 225 index wrapped up Tuesday's session higher by 0.1%. 

"They're running out of ideas on monetary policy," said Ingram about the Bank of Japan's push for inflation, which rose only 0.5% year over year as of September. "Fiscal policy has been a damp squid."

Still, the Bank of Japan's inaction mirrors similar inaction from the European Central Bank, which held a policy meeting earlier in October.

The Federal Reserve has only hiked interest rates once since the 2008 recession.

The markets are only pricing in a 7.2% chance of a rate hike at the Fed's November meeting on Wednesday, according to the CME futures data. A December rate hike, however, has a 72.5% probability of occurring.

Ingram expects "relaxed" commentary from the Fed's November statement, to be released Wednesday, just one week before the U.S. presidential election. Assuming the Fed doesn't hike rates on Wednesday, Ingram said he will be watching to see how many Fed officials disagree with the Fed's decision.

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