Economic Buzz: Bank of Japan ready to raise interest rates, says Japan's economy had recovered moderately

The Bank of Japan (BoJ) has signaled a clear readiness to raise interest rates in tandem with improvements in the domestic economy, according to the minutes of its latest policy meeting. The summary of deliberations indicates that a majority of board members see the economy moving on a path that justifies a gradual normalization of the central bank?s ultra-loose monetary policy. Japan's economy had recovered moderately, although some weakness had been seen in part. Regarding the outlook, the economy was likely to continue growing moderately, with overseas economies returning to a growth path, and as a virtuous cycle from income to spending gradually intensified, supported by factors such as the government's economic measures and accommodative financial conditions, while the economy was projected to be affected by trade and other policies in each jurisdiction. However, in the wake of the increased tension over the situation in the Middle East, global financial and capital markets had been volatile and crude oil prices had risen significantly; future developments warranted attention. Exports continued to be more or less flat as a trend. Regarding the outlook, they were likely to remain more or less flat for a while.

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