BoJ strikes more upbeat view on economy, holds off fresh measures
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TOKYO (AFP) - The Bank of Japan on Friday struck a more upbeat view of the world's number three economy, saying exports were showing signs of picking up while factory output has started to "bottom out".
The comments came after policymakers wrapped up a two-day meeting where they voted by an 8-1 margin to hold off fresh easing measures, after announcing in late October a huge expansion of the BoJ's asset-buying programme.
The yen weakened slightly against the dollar and euro after the announcement, with the focus now on bank governor Haruhiko Kuroda's regular post-meeting news briefing later in the day for any hints about policy moves in the new year.
"Japan's economy has continued to recover moderately as a trend...(while) overseas economies -- mainly advanced economies -- have been recovering, albeit with a lacklustre performance still seen in part," the BoJ said in a post-meeting statement.
"In this situation, exports have shown signs of picking up."
Private consumption remains "resilient" while real-estate investment has "started to bottom out", the bank said, echoing its view of factory output, which edged up 0.2 per cent on-month in October, beating market expectations.
"Business sentiment has generally stayed at a favourable level, although some cautiousness has been observed," it added.
The announcement came after the BoJ's quarterly Tankan survey this week showed confidence among major Japanese manufacturers edged down in the three months to December.
A separate bank report Thursday highlighted caution among firms that were holding a record amount of cash equivalent to almost half the country's gross domestic product, despite calls for more wage hikes and capital spending.
Plunging oil prices have helped narrow Japan's gaping trade deficit while a sharply weaker yen has been a plus for exporters. But lower energy import prices are also digging into the BoJ's efforts to reach 2.0 per cent inflation, which is aimed at ending years of deflation and tepid growth.
Tokyo's broader attempt to stoke the economy took a hit after an April sales tax rise slammed the brakes on growth as Japan sank into recession during the third quarter.
