The Bank of Japan is expected to maintain its massive monetary stimulus on Tuesday on a view the economy can weather a sales tax increase in April without extra support, although there is expected to be some concern about weakness in exports.
The BOJ board can point to strength in industrial output, labor demand and consumer spending to back its view the economy will continue a gradual recovery and its 2 percent inflation target is achievable over the next 12 months or so.
There is some concern within the BOJ about slow exports, but pessimists are not expected to have the numbers to tip the votes towards a downgrade of the central bank’s stance that export growth will eventually rebound.
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