The Bank of Japan said Tuesday the country's economy remains on a recovery track under the central bank's aggressive monetary easing, leaving almost unchanged its projections for growth and inflation despite a negative impact from the April sales tax hike.
The widely expected move added to the market view that the BOJ will not immediately move to further ease monetary conditions as it believes the consumption tax hike has caused only limited headwinds for the efforts by the government and bank to beat chronic deflation in the country and keep the recovery from derailing, according to Japan's (Kyodo) News Agency.
At its two-day meeting that ended the same day, the BOJ's Policy Board reviewed its forecasts for Japan's growth and inflation.