The government's comprehensive economic stimulus package featuring additional public works projects and special tax reductions will probably have only a limited impact on contracted private demand, the Bank of Japan said in a report Tuesday.
According to the central bank's monthly report on recent economic and financial developments for July, overall economic conditions have deteriorated since its last report in June.
"Although a further deterioration in the economy is expected to cease as the effects of the stimulus package become full scale, the positive influence of the package on private demand will likely be limited," the bank said in the report. "The economy's immediate transition to a self-sustained recovery is hardly expected."