The Bank of Japan on Friday struck a more upbeat view of the world’s number three economy, saying exports were showing signs of picking up while factory output has started to ‘bottom out’.
At a post-meeting press briefing, bank governor Haruhiko Kuroda repeated a pledge to do whatever is necessary to achieve the bank’s 2% inflation target in 2015, part of a wider bid to end the deflation that has plagued the economy for years.
A plunge in crude oil prices is threatening the bank’s target, but cheaper energy should give the wider economy a shot in the arm and generate higher prices, he said. “The fall in oil prices has positive effects on the overall economy,” Kuroda told the media.
The central bank kept up its view that Japan was seeing a moderate recovery, in line with other advanced economies including the US.