The Bank of Japan refrained from easing monetary stimulus further as policymakers assessed that faster economic growth in the first quarter warrants no more immediate actions.
The Policy Board of the BoJ governed by Haruhiko Kuroda decided by an 8-1 majority vote to maintain its target of raising the monetary base at an annual pace of about JPY 80 trillion.
The BoJ had earlier expanded the stimulus in October, citing notable downward pressure from a substantial decline in crude prices hindering its ability to reach the 2 percent inflation target.
At the May meeting, policymakers provided a more optimistic view on the economy. The economy expanded an annualized 2.4 percent in the first quarter of 2015, helped by private consumption.
The BoJ said the economy had continued to recover moderately withdrawing the word "trend." The bank also lifted its assessment of private consumption as well as housing investment.
Private consumption has been resilient, the bank said today. Previously, it noted that private consumption recovery in some areas has been sluggish.
Housing investment has bottomed out and shown some signs of picking up. Further, the bank said public investment has entered a moderate declining trend, although at a high level.
According to the BoJ, inflation expectations appear to be rising on the whole from a somewhat longer-term perspective.
With slower wage growth, inflation is unlikely to pick up as quickly in the second half of the year as the BoJ expects, Marcel Thieliant, an economist at Capital Economics said.
The economist therefore remained convinced that policymakers will have to step up the pace of asset purchases before too long, with October now the most likely venue for this to happen.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.