The Bank of Japan released a monthly report Wednesday in which it upgraded its assessment of the economy by confirming a recovery -- albeit gradual -- and suggested that conditions do not yet merit a rise in interest rates.
"Japan's economy is recovering gradually, with corporate profits and business fixed investment continuing to increase," the BOJ said in its Monthly Report of Recent Economic and Financial Developments for July.
On the outlook for the economy, the report says it "is likely to recover gradually," led mainly by corporate capital investment, barring any major adverse shocks from outside Japan.