Bank of Japan Monthly Report, July 2004

The Bank of Japan released the English version of its monthly report on 15 July. Japan's economy continues to recover, with the increase in production and corporate profits exerting positive effects on employment, the central bank said.

In its April report, the BoJ forecast consumer prices would drop 0.2 per cent in the fiscal year to March 2005.

It said consumer prices will continue to edge lower in the current fiscal year, because a reduction in labour costs will continue despite an improveme