‘‘The BOJ can sit and wait as the economy is improving and consumer prices are rising "
-Maiko Noguchi, senior economist at Daiwa Securities Co.
Bank of Japan refrained from expanding its stimulus programme as consumer prices climbed in June and recovery of the third-largest economy continued to gain momentum. The bank maintained its monetary base at 70 trillion yen per year, in line with expectations. The BOJ left unchanged its economic outlook after raising its assessment in July to a record. Consumer prices rose 0.4% in June, posting the biggest monthly jump in two years. The country's economy expanded 1% in the first quarter, or 4.1% on a yearly rate. Japan's economy may have grown 3.6% in the second quarter, according to market consensus. The Ministry of Finance is due to release its GDP data on August 12.
Japan's current account surplus shrank 20.3% in June on an annual basis as large energy imports weighted on the balance of payments, reported the Ministry of Finance. A fall in the surplus exceeded forecasts for a 6.9% yearly drop and was the biggest monthly decline since February. Meanwhile, the balance of trade was in deficit for the 12th consecutive month as import costs climbed on weaker yen offsetting gains in exports. Exports rose 6.7% year-on-year in June and imports surged 11.6% over the same period
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