BOJ Survey: Business Sentiment Rises for Sixth Straight Quarter Amid Economic Challenges
The Bank of Japan released its quarterly 'tankan' survey on Thursday, showing an improvement in business sentiment for large manufacturers. The key indicator rose to 24 from 22, marking the sixth straight quarter of growth.
Despite facing widespread challenges, including soaring oil prices and a weak Japanese yen, companies surveyed foresee good conditions minus those feeling pessimistic. Brent is trading at around $98 a barrel, lower than its nearly $120 peak earlier this year but still higher than pre-war levels.
The Bank of Japan has been trying to normalize monetary policy after decades of keeping interest rates near or below zero. It raised the benchmark interest rate twice this year, in June and September, to 1.25%, a three-decade high. However, the Japanese yen remains relatively weak, adding to challenges from rising import prices.