The Bank of Japan has announced that for the first time in two years the Japanese economy is “recovering” in its most recent assessment of economic conditions in the country.
In April, Bank of Japan governor Haruhiko Kuroda unveiled a massive plan to help the Japanese economy back on its feet through a monetary policy programme involving $1.4trn of quantitative easing.
The central bank issued a statement today declaring “Japan’s economy is starting to recover moderately” following a two-day policy meeting in which its board also voted unanimously to maintain its plan to expand the country’s monetary base at a rate of Y60trn to Y70trn a year.
The announcement marks the first time since the bank formally described the economy as being en route to expansion in early 2011. However Kuroda had previously said he believes a recovery has started.
The past six months have seen the bank’s view of the Japanese economy grow more positive, noting signs of a “pick-up” in exports and “resilience” in consumer spending last month.
The most recent data to be released also shows a rise in machinery orders in May, while orders rose significantly more than analyst’s original forecasts, to 10.5 per cent compared with April figures.