The Bank of Japan on Thursday reiterated that the economy's recovery from last year's earthquake has come a pause, while overseas economies have "moved deeper into a deceleration phase."
Exports and industrial production have been relatively weak, while domestic demand has been resilient, the central bank said in its monthly report.
Public investment and business fixed investment continued to rise. Housing investment has generally been picking-up. Private consumption has been resilient with the employment situation on an improving trend, the report noted.
The central bank expects Japan's economy "to level off more or less for the time being" and thereafter return to a moderate recovery path supported by domestic demand and recovery in overseas economies.
Exports and industrial production are expected to remain relatively weak for the time being. The year-on-year rate of change in consumer prices is expected to remain at around zero for the time being, the central bank added.
BoJ on Wednesday unveiled another round of stimulus to prop up the economy by expanding the size of the asset purchase program by JPY 10 trillion.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.