The Bank of Japan said Tuesday it will maintain its ultraeasy monetary policy and keep unchanged its assessment of the economy for the sixth consecutive month, saying it has “continued to recover moderately” based on the judgment that deflation is disappearing.
After a two-day meeting, the nine-member Policy Board opted unanimously to maintain the large-scale monetary easing introduced last April, though some analysts had speculated the bank would further ease its monetary grip.
In leaving its policy unchanged, the BOJ has apparently judged the economy is on the path to achieve its 2 percent inflation target, despite some uncertain factors, including possible adverse effects of the consumption tax hike on April 1.
In a statement released after the meeting, the BOJ lowered its assessment of exports, saying they “have recently leveled off more or less” from the previous assessment that they had “generally been picking up.”
But the bank upgraded its view on capital investment and industrial output, stating the pickup in business fixed investment “has become increasingly evident” backed by improvement in corporate profits, and production “has been increasing at a somewhat accelerated pace.”
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