The Japan economy is expected to continue recovering moderately, the Bank of Japan said in its monthly report on Monday.
The bank provided optimistic view on private spending and housing investment. Private consumption is expected to remain resilient with steadily improving employment and income situation.
Housing investment is projected to pick up. Further, the bank said public investment is expected to continue its moderating declining trend, albeit maintaining a somewhat high level.
Business fixed investment is projected to continue a moderate increasing trend as corporate profits follow their improving trend, the bank said.
Further, the bank observed that inflation expectations appear to be rising on the whole from a somewhat longer-term perspective.
At the policy board meeting last week, the bank maintained its target of raising the monetary base at an annual pace of about JPY 80 trillion.
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