19.12.202312:29:00UTC+00Japan Govt Keeps Economic View Unchanged

Japan's government retained its economic assessment on Tuesday as corporate conditions are improving and inflation showed signs of moderation.

In the monthly report, the cabinet office maintained its assessment, saying that the economy is recovering at a moderate pace, although it recently appears to be pausing in part.

Last month, the government had downgraded its economic view, which was the first such move since January citing the weakness in business investment.

Upgrading its view on business sentiment, the government said firms' judgment on current business conditions are improving. Corporate profits are improving as a whole.

Further, the cabinet office tweaked its wordings on consumer prices. The report said, "Consumer prices have been rising at a moderate tempo recently."

The government said private consumption is picking up, unchanged from the November report. Likewise, views on business investment, exports and industrial production were kept unchanged.

The government reiterated that the employment situation shows movements of improvement.

"The economy is expected to continue recovering at a moderate pace with the improving employment and income situation, supported by the effects of the policies," the government repeated.

The report cited slowdown in global economies, including the effects of global monetary tightening and the concern about the prospect of the Chinese economy as major downside risks.

The government expects the Bank of Japan to achieve its inflation target of 2 percent in a sustainable and stable manner, accompanies by wage increases.

Earlier in the day, the BoJ had maintained its negative interest rate and the yield curve control and also retained its dovish forward guidance at the final meeting of the year.