“Modest recovery” in Japanese economy

<p>The Bank of Japan has commented on the nation’s “modest” economic recovery.</p>

Japan's economy is starting to recover "modestly", according to the Bank of Japan (BoJ).

An upbeat assessment of the economic recovery in the Asian nation led to the BoJ leaving its monetary easing programme unchanged for the month.

It will therefore continue to inject more than 60 trillion yen (£402 billion) a year into the economy in a project that has been dubbed Abenomics after the prime minister Shinzo Abe.

"With regard to the outlook, Japan's economy is expected to recover moderately on the back of the resilience in domestic demand and the pick-up in overseas economies," the BoJ said in a statement.

Japan, which has been suffering from deflation for an extended period, recently promised that it will deliver two per cent inflation in the next two years.

Haruhiko Kuroda, a veteran of international finance, was appointed by Mr Abe as the governor of the BoJ in March to work on this target.

Although the Nikkei was up by 0.4 per cent today on the back of strong gains recorded by Fast Retailing, it had fallen by one per cent at an early point in the session.

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