The Bank of Japan may slightly raise its assessment of overseas economies, people familiar with the bank’s thinking said, a sign that the bank remains confident that sluggish exports will pick up and help Japan’s economy to achieve a sustained recovery.
Robust U.S. jobs data and rising Wall Street stocks have heightened confidence within the BOJ that the world’s largest economy has exited a soft patch blamed largely on severe winter weather, said the sources, who asked not to be named.
“External risks have subsided somewhat,” one of the sources said on condition of anonymity. Another source expressed a similar view.
BOJ Governor Haruhiko Kuroda has recently been upbeat about progress in escaping deflation and achieving his 2 percent price target. But the BOJ has been notably wrong about exports.
The central bank has pushed back the expected timing of a pickup in exports by several months in its assessments. (Reuters)