Bank of Japan maintains stimulus, says economy recovering
TOKYO (REUTERS) - The Bank of Japan declared the world's third-largest economy is recovering as it voted on Thursday to maintain its monetary stimulus, offering a more upbeat view than last month on growing signs the benefits of its expansionary policy are broadening.
A slew of positive data has underscored the view that robust household spending and the feel-good mood generated by Prime Minister Shinzo Abe's pro-growth policies are gradually prompting companies to increase capital spending and hiring.
The BOJ's upgraded view may heighten the case for Mr Abe to go ahead with a planned sales tax hike from next year, a move seen as necessary to start reining in Japan's huge public debt.
As widely expected, the central bank voted unanimously to maintain its pledge of increasing base money, or cash and deposits at the central bank, at an annual pace of 60 trillion yen (S$770 billion) to 70 trillion yen.