BOJ says Japan more confident for a recovery (Reuters) (19-01-2011)

TOKYO - Japan's economy is expected to escape from a lull by March or at least during the first half of this year, making that way the central bank more confident about the prospects of an early return to moderate recovery.

The BOJ is expected to slightly tweak its growth forecasts next week while keeping monetary policy on hold and sticking to its view that firm demand in Asia will pull the economy out of stagnation in a few months.

The bank’s new growth forecasts should fall in line with Momma's forecasts, although final figures will be decided by its nine board members at a rate review next week.

BOJ Governor Masaaki Shirakawa met with Prime Minister Naoto Kan on Wednesday to offer his views on the global and Japanese economies. Shirakawa said the yen's renewed rise was not discussed at the meeting, which a regular gettogether between the two was held once every three months.

Japan's economy is currently at a standstill with any rebound from an expected contraction in the final quarter of last year seen modest.Japan though, is estimated to avoid a double-dip recession, with exports picking up on firm demand in emerging Asia and automakers increasing production.

Source: Reuters