Bank of Japan Could Upgrade Country’s Economic Assessment

The Bank of Japan is likely to consider upgrading its assessment of the Japanese economy and whether to use the word “recovery” in its statement to be released after its two-day policy meeting starting Wednesday, according to sources close to the matter.

It would be the first time in the two and a half years since January 2011 for the central bank to use the term “recovery” in its economic assessment. Corporate sentiment has improved recently, mainly among large companies, due to the depreciation of the yen.

At the nine-member Policy Board meeting, the BOJ is expected to maintain its goal introduced in April of achieving a 2 percent inflation target in two years with ultraloose monetary policy.

In its statement released after the previous policy meeting in June, the BOJ said the Japanese economy “has been picking up.” The policymakers are likely to discuss whether the central bank should upgrade the assessment by using an expression such as the economy “is recovering moderately.”

Some within the BOJ believe any change in wording should not go so far this time and the central bank should wait until it can further assess economic data, including for April-June gross domestic product due out in mid-August, the sources said.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza