RTTNews - The Bank of Japan maintained its economic assessment after upgrading it for three straight months, the latest Monthly Report of Recent Economic and Financial Developments showed Wednesday.

The central bank stated that Japan's economic conditions have stopped worsening, the same as in July report. Looking forward, the central bank reiterated that Japan's economic conditions are likely to turn upward over time.

Yesterday, the BoJ had retained its key interest rate at 0.1%. Also, the central bank refrained from announcing more unconventional measures.

In a conference co-hosted by the People's Bank of China and the Bank for International Settlements in Shanghai on August 8, BoJ Governor Masaaki Shirakawa said ... it would be important to have an appropriate built-in exit mechanism which reduces the incentive to use the facility as market functioning recovers.

He said measures to take on individual credit risk such as corporate debt are extraordinary steps for a central bank since they come close to the area of fiscal policy which deals with resource allocation at the micro level.

On August 11, the Cabinet Office had left its economic assessment unchanged for August after upgrading it for three consecutive months. The government said the economy is showing signs of picking up recently. Further, the economy is expected to improve in the months ahead.

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