Three months into Japan’s bid to reinflate its economy after years of falling prices, the country’s central bank said on Thursday that economic conditions were starting to recover, signaling its confidence that the world’s third-largest economy was on the cusp of a long-awaited turnaround.
It was the first time since January 2011, before Japan’s natural and nuclear disasters in March that year, that the Bank of Japan had ventured to use the word “recover.” The bank’s message was underpinned by a rebound in Japan’s mainstay exports, helped by a weaker yen, and some signs of a broader recovery in consumer spending.
Reflecting its optimism, the central bank’s policy-setting board left its monetary policy unchanged and stuck to its goal of hitting 2 percent inflation in two years. To get money flowing again in the Japanese economy, the bank, led by its governor, Haruhiko Kuroda, has pledged to pump 60 trillion to 70 trillion yen, or about $600 billion to $700 billion, into the economy annually.
Read the rest of the story: Japan’s Economy on Road to Recovery, Central Bank Says.