BoJ confident on recovery

Many Bank of Japan policymakers grew more confident on the country's economic recovery last month due to receding pessimism over the US economy and signs of an export rebound, minutes of its January 24-25 rate review showed. With optimism rising over the outlook, the government is likely to upgrade its assessment of the economy in its monthly report for February as exports and factory output show clear signs of recovery, the Nikkei business daily said on Friday.
The second straight month of upgrades by the government would follow the BoJ's decision on Tuesday to revise its economic assessment upward to say it is gradually emerging from a slowdown. In its report due on Monday, the government will stop short of announcing an end to stagnation but will say there are increasing signs that an exit from the doldrums is near, the paper said without citing sources.
A rebound in exports and output, driven by robust demand in fast-growing Asia, has underscored the BoJ's view that the economy is heading towards a moderate recovery after a mild contraction in the final quarter of last year. At the January rate review, one board member said the recovery may come around spring, while another member said there was a good chance it may be as early as the first quarter, minutes of the meeting showed on Friday.
"However, a few members said that while the chance of Japan's economy resuming a moderate recovery has heightened, uncertainty remains on developments thereafter," the minutes showed. At the January meeting, the BoJ nudged up its price forecast for the year starting in April and forecast an early escape for Japan from the economic doldrums in a quarterly review of its growth forecasts. It kept monetary policy steady and maintained interest rates at a range of zero to 0.1 percent.