Japan's economic prospects rise; yen eyed to fall further on BOJ moves

Tokyo

THE Japanese government on Wednesday upgraded its view of the nation's immediate economic outlook for the first time in 18 months, echoing a similar upgrade the previous day by the Bank of Japan and implying a reduced need for further monetary and fiscal stimulus.

But despite the improved economic outlook, the BOJ appears intent on keeping domestic interest rates low so that rate rises overseas will force the yen down and allow inflation to rise to the point where its 2 per cent annual inflation target comes within sight.