BoJ more optimistic on economic assessment

The Bank of Japan has upgraded its economic assessment for the first time since December because of signs that an export-led recovery is spreading to consumers and service companies.

"Japan's economy is recovering gradually, and domestic demand is becoming firmer," the BoJ said in its April report.

The latest assessment compares favorably with the March report, which simply stated that "Japan's economy is recovering gradually", without any reference to the development in domestic demand.

Bank of Japan governor Toshihiko Fukui said that he will continue the existing monetary policy framework until Japan fully overcomes deflation and for this purpose, the BoJ will "not consider cutting the reserve target range" at any foreseeable future.

The policy board voted unanimously after a two-day meeting to keep the upper limit of the target for reserves available to lenders at 35 trillion yen ($271.7bn).