TOKYO, Feb 7: The Bank of Japan is expected to keep monetary policy steady next week and consider revising up its assessment of the economy as exports find some relief from recent yen declines and a pick-up in global demand, sources familiar with its thinking said.
Prime Minister Shinzo Abe, who has the power to fill three top BOJ posts opening up next month, is keeping up pressure on the central bank to take bold action to achieve its new 2 percent inflation target and revive the fragile economy.
But the BOJ is seen holding off on expanding stimulus at its rate review on Feb. 13-14, the sources said over the course of this week, to review the effect on the economy from monetary easing steps taken in the past few months.
With factory output and exports showing some signs of life, the central bank will also consider offering a slight more upbeat view of the economy compared with January, the sources said. In the previous month, it said the economy was weakening.
The BOJ doubled its inflation target in January and made an open-ended commitment to buy assets from next year. That was the fourth monetary expansion in five months. (agencies)
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