"Japans economy is likely to turn to a moderate expansion."Reflecting these moderate increases in demand both at home and abroad, and the progress in inventory adjustments, industrial production has picked up.The bank made no reference to any timeline for winding down its 80 trillion yen annual asset-purchase programme..But last month, the central bank said it now expects to hit two percent inflation by March 2019 -- four years later than its original target and the latest in a string of delays.Policymakers held fire on further stimulus and said they would maintain a plan to keep the yield on government 10-year bonds around zero, part of a broader bid to stimulate growth.Japans recovery has been wobbly and Tokyo this month downgraded its July-September China Aluminum tape Manufacturers growth estimate to 0.Tokyo: The Bank of Japan on Tuesday improved its view of the worlds number-three economy, providing some relief to the governments stuttering growth drive, as exports pick up on the back of a steep slide in the yen.20 yen from 117."The yen has fallen more than 17 per cent against the greenback since Donald Trumps shock US presidential win in November fanned speculation that his plans for big government spending and tax cuts will force the Federal Reserve to hike borrowing costs.
Abes promises to cut through red tape -- the key third plank of Abenomics -- have also been slow in coming.In November, Japans central bank again pushed back its timeline for hitting an inflation target that looks increasingly out of reach.The BoJ hoped consumers would spend more if prices were rising, persuading firms to expand operations and getting the economy humming.However, the positive words come as Prime Minister Shinzo Abes big-spending, easy-money plan to kickstart growth falters.On Tuesday, the US unit was at 117.07 yen just before the announcement.A weaker yen is good news for Japans exporters as it boosts their competitiveness and profitability.The banks final meeting of 2016 came on the heels of stronger-than-expected November export data and the first rise for more than a year in its closely watched survey of business confidence.3 percent, from an initial 0.But wage growth has fallen below expectations, meaning workers have less money to spend.The bank noted that exports and industrial production are gathering steam, after saying they were "sluggish" in a November statement."Exports have picked up," the bank said, adding that corporate and private spending were also on the upswing.The scheme was introduced by bank governor Haruhiko Kuroda in conjunction with the Abes spending programme, dubbed Abenomics.The cut underlined the challenges in reviving an economy plagued by a deflationary price spiral that hurt activity for years.For more than three years, BoJ policymakers have embarked on a bond-buying stimulus programme to try to keep interest rates ultra-low and increase borrowing and spending.5 percent reading.