The Bank of Japan on Friday upgraded its view of the economy for the first time in four months, stepping up the upbeat tone of its assessment.
The forecast is in line with economists' growing expectations that the central bank will abandon its ultraloose monetary policy as early as April.
"Japan's economy continues to recover steadily," says the bank's "Monthly Report of Recent Economic and Financial Developments for January," indicating it believes the current economic growth is sustainable. The previous report said "Japan's economy continues to recover."