The Bank of Japan released its monthly report for recent economic and financial developments today. The bank raised its assessment for economic conditions saying that the economy is picking up due to stimulus measures taken in Japan and around the world.
The Bank of Japan kept interest rates unchanged at 0.1% and decided to end corporate debts purchases by the end of this year as it was scheduled, while the bank decided to extend the limitless lending program till March 31 accepting the low rated debts as a collateral till the end of next year.
The bank said that the stimulative effects from low borrowing costs have been limited given the low level of economic activity and corporate profits. As for credit conditions, the bank ensured that companies as a whole can see the improvements in credit conditions, despite many firms see financial institutions lending attitudes as "severe".
However, the pace of increase in bank lending has slowed, as some companies reduced the on hand liquidity they accumulated, in other words credit demand declined.
Economic conditions in Japan are improving and deteriorations in the business sector eased, that was why the decline in business fixed investment is coming to a halt, especially after cheerful corporate earnings we witnessed in the third quarter. The BOJ signaled private consumption is picking up especially consumption of durable goods.
Exports and production continued to show improvements supporting economic recovery, worth mentioning that industrial production in Japan rebounded 2.1% in September to record the seventh straight rise backed by increasing demand from Japan's main markets.
Moreover, the Japanese economy expected exports and production to continue improving reflecting the continuous improvements in overseas economic conditions.
Yearly consumer prices excluding fresh food declined due to low crude oil and raw materials prices, which is lower than last year's levels. The BOJ anticipated the drop in consumer prices to moderate as petroleum prices are recovering.
Finally, conditions in the world's second largest economy is getting better, despite recovery appear to be fragile. Japan economy expanded 1.2% in the third quarter from the previous three months, while it expanded an annual 4.8% following a revised expansion by 2.7%.
The Bank of Japan kept interest rates unchanged at 0.1% and decided to end corporate debts purchases by the end of this year as it was scheduled, while the bank decided to extend the limitless lending program till March 31 accepting the low rated debts as a collateral till the end of next year.
The bank said that the stimulative effects from low borrowing costs have been limited given the low level of economic activity and corporate profits. As for credit conditions, the bank ensured that companies as a whole can see the improvements in credit conditions, despite many firms see financial institutions lending attitudes as "severe".
However, the pace of increase in bank lending has slowed, as some companies reduced the on hand liquidity they accumulated, in other words credit demand declined.
Economic conditions in Japan are improving and deteriorations in the business sector eased, that was why the decline in business fixed investment is coming to a halt, especially after cheerful corporate earnings we witnessed in the third quarter. The BOJ signaled private consumption is picking up especially consumption of durable goods.
Exports and production continued to show improvements supporting economic recovery, worth mentioning that industrial production in Japan rebounded 2.1% in September to record the seventh straight rise backed by increasing demand from Japan's main markets.
Moreover, the Japanese economy expected exports and production to continue improving reflecting the continuous improvements in overseas economic conditions.
Yearly consumer prices excluding fresh food declined due to low crude oil and raw materials prices, which is lower than last year's levels. The BOJ anticipated the drop in consumer prices to moderate as petroleum prices are recovering.
Finally, conditions in the world's second largest economy is getting better, despite recovery appear to be fragile. Japan economy expanded 1.2% in the third quarter from the previous three months, while it expanded an annual 4.8% following a revised expansion by 2.7%.
