TOKYO: The Bank of Japan yesterday held off announcing any fresh measures to stimulate the economy, offering the upbeat view that it was “recovering moderately” while efforts to stoke inflation were taking hold.
The decision comes days after the bank’s closely watched Tankan quarterly survey showed business confidence has soared to a six-year high, underscoring growing optimism among Japanese firms.
However, analysts said the bank would likely have to widen its monetary easing measures if it is going to win its battle against deflation as a sales tax hike is due to come into effect in April.
There had been speculation of an expansion of the asset-purchasing programme after figures last week showed a sharp slowdown in July-September growth, which raised concerns about the strength of the world’s third-largest economy.
“Japan’s economy has been recovering moderately,” the BoJ said in a statement, adding that “inflation expectations appear to be rising on the whole”. “The year-on-year rate of increase in the CPI (consumer price index) is likely to rise for the time being.”
afp
