The Bank of Japan maintained its massive monetary stimulus on Friday and upgraded its view on capital expenditure, encouraged by growing signs that the benefits of its aggressive policy action to escape deflation are broadening.
After a two-day review, the central bank reiterated its view the world’s third-largest economy is recovering moderately, suggesting that no additional monetary policy measures are needed to counter the pain from next year’s sales tax hike.
“Capital expenditure is picking up as corporate profits improve,” the BOJ said in a statement. That was slightly more optimistic than last month, when it said capital spending was showing signs of a pick-up.
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