Economies across the globe seem to be recovering albeit slowly. Japan as well is moving along moderately with financial numbers rising beyond expectations at the end of the 2nd quarter.
In its just released monthly report of Recent Economic and Financial Developments, the BOJ reversed its previous estimates of economic growth for the world’s third largest economy pointing to positive numbers almost across the board.
The central bank stated that Japanese exports are expected to increase moderately and that business fixed investment is projected to continue growing modestly. Private consumption is expected to remain robust and housing investment should be improving.
The report also pointed to continued improvement in the employment sector.
Up from 2nd Quarter
Last month, the Japanese government downgraded its outlook for consumer prices. Officials are now expecting a 0.6% rise for this fiscal year, lower than their previous estimates of a 1.4% increase due to the decline in oil prices.
The Bank of Japan has increased its monetary base significantly as asset purchases have progressed and the year-on-year rate of growth has now been set in the range of 30-35 percent.
The decline in energy prices across the world has affected international commodity prices and producer prices in Japan as elsewhere are expected to remain more or less flat for the time being. The year-on-year rate of increase in consumer prices is likely to be about 0 percent for the time being.
The value of the yen against the U.S. dollar, long-term interest rates and stock prices have remained at more or less the same levels as last month.