The Bank of Japan had called for a moderate recovery for the economy by the end of the year, and Miyao is sticking to this. However, the consistent rise of the yen and high energy costs are risks to growth, reports Leika Kihara for Reuters.
The Bank of Japan is still ready to intervene and ease policy more if necessary. [Japanese Yen ETF Back Near Record High]
“Miyao towed the BOJ’s line on the underlying economy but struck a cautious note on the outlook due to Europe’s debt problems, signaling the chance it may cut its projections in its twice-yearly outlook report in October,” Naomi Hasegawa, senior fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities, said.
Tisha Guerrero contributed to this article.