RTTNews - Monday, the Bank of Japan raised its economic assessment. In its latest Economic and Financial Developments Report, the central bank said economic conditions in Japan have been deteriorating, but exports and productions are beginning to level out. Last month, the central bank assessed significant deterioration in economic activity.

The central bank stated in its monthly report, The pace of deterioration in Japan's economic conditions is likely to moderate gradually, leading to a leveling out of the economy. The central had said in April that Japan's economic conditions are likely to continue deteriorating for the time being.

Earlier in the day, BoJ Governor Masaaki Shirakawa said the sharp deterioration in economic and financial conditions in Japan and abroad is beginning to level out and he sees prospects of a mild recovery ahead.

He said in a speech to commemorate the 100th Anniversary of the Kanazawa Branch that the central bank is aware of the side effects that extremely low interest rates may have on the functioning of money markets and the business conditions of financial institutions.

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