Bank of Japan Starts Meeting Stimulus on the Agenda

The Bank of Japan started a two-day policy meeting Wednesday, with discussion likely to involve whether to lift its economic assessment on the back of improving economic data while keeping intact its ultraloose monetary policy.

In the previous meeting last month, the central bank, which introduced the ultraloose policy in April, lifted its assessment of the Japanese economy for the seventh consecutive month, saying it is “starting to recover moderately.” That marked the first time the word “recover” had been used in two and a half years.

Japan’s economy appears to be on a recovery track as anticipated by the BOJ, with department store sales increasing 7.2 percent in June from a year earlier. The jobless rate also improved to 3.9 percent in June, falling below 4 percent for the first time in four years and eight months.

On the price front, consumer prices rose in June for the first time in one year and two months, marking a 0.4 percent increase from a year earlier on higher energy prices amid a weaker yen, though it is still far from the 2 percent inflation pursued by the bank.

It remains to be seen whether the BOJ will decide to lift the assessment again, as some within the bank are cautious about upgrading as they want to monitor developments in corporate investment and production amid a slowdown in growth in China and other emerging economies, sources close to the matter said.

via Mainichi

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