Economic recovery firms in Japan

Yasuo Matsushita, governor of the Bank of Japan, said the "economic recovery is becoming firmer" due to an increase in domestic demand, which had started to stimulate higher production and wages growth. "Favourable moves among demand, production and wages have started to work gradually, and the economic recovery is becoming firmer," he said.

Mr Matsushita said that, while the recent Tankan survey confirmed a lack of private sector confidence about the emergence of a strong recovery, "we should not be too pessimistic". He said the consumption tax hike was likely to have only a temporary impact on the recovery and was unlikely to undermine the move towards a self-sustained recovery.