BoJ Survey: Business Sentiment Improves for Sixth Straight Quarter Amid Challenges
The Bank of Japan's quarterly 'tankan' survey revealed a positive outlook on the economy for the sixth consecutive quarter. The report showed that large manufacturers' sentiment rose to 24 from 22, while large non-manufacturers saw their sentiment fall to 35 from 37.
Despite widespread challenges facing Japanese society, including soaring oil prices and a weak yen, companies are foreseeing good conditions. Brent crude is trading at around $98 a barrel, lower than the nearly $120 it reached earlier, but still higher than before the war in Iran, when it was trading below $70 a barrel.
The Bank of Japan raised its benchmark interest rate twice this year to 1.25 per cent, a three-decade high, citing challenges from a weak yen and higher prices. The central bank has been trying to normalize monetary policy after decades of keeping interest rates near or below zero.