Bank of Japan Expects Moderate Recovery for Japan

The Bank of Japan raised its economic assessment Tuesday on signs that an end to stagnation is near, cheered by a rebound in exports and factory output.

The move is seen as signaling that another monetary easing is not on the horizon, with interest rates already low in a range of zero to 0.1 percent.

Driven by robust demand in fast-growing Asia, the central bank sees the economy heading towards a moderate recovery after hitting a soft patch.

Japan’s economy shrank slightly in the final quarter of last year, but the BOJ sees the resumption of a moderate recovery toward the middle of this year with the yen continuing to ease off a 15-year peak against the dollar hit late last year.

The BOJ last year cut interest rates effectively to zero and set up a $60 billion fund to buy assets ranging from government bonds to private debt.

Japanese financial markets reacted little to the news, as the Nikkei share benchmark traded near a 9-month high and the yen held a tight range against the dollar.

Foto: NTDTV