Japan's central bank has upgraded its assessment of the national economy and opted to keep its interest rate at 0.1%, amid government pressure to prevent deflation.
Asia's largest economy grew 4.8 percent during the last quarter, but consumer prices have seen a steady decline throughout the year.
"Japan's economy is picking up mainly due to various policy measures taken at home and abroad, although the momentum of self-sustaining recovery in domestic private demand remains weak. The Bank will provide steady support for Japan's economy to return to a sustainable growth path with price stability," the AFP news agency quoted the Bank of Japan as saying.
Speaking after a Cabinet meeting on Friday, Finance Minister Hirohisa Fujii urged the central bank to take steps to prevent continued deflation, while Prime Minister Yukio Hatoyama warned that the bank's outlook for the economy may prove overly optimistic.
TOKYO, November 20 (RIA Novosti)