The Bank of Japan kept monetary policy steady on Friday and offered a slightly more upbeat view on overseas growth, signalling confidence the economy is on course to meet its inflation target next year without additional stimulus.

Markets are focusing on what governor Haruhiko Kuroda has to say later in the day about measures taken by the European Central Bank last week to ease pressure on the strong euro and fend off the risk of a Japan-style deflation.

The BOJ is increasingly convinced the world’s third-largest economy will continue its modest recovery, with companies ramping up capital spending and consumer confidence holding up despite the pain from a recent sales tax hike.

Sluggish exports remain a soft spot for the economy, however, although BOJ officials see overseas headwinds receding as China’s exports rebound and as the US economy recovers from a severe winter.

“Overseas economies, mainly advanced economies, are recovering, although lackluster performances are seen in some areas,” the central bank said.

That was a slightly brighter view than last month, when it said global growth was “starting to recover” albeit with lacklustre performances in some areas.

As widely expected, the BOJ maintained its monetary policy framework, under which it has pledged to increase base money by 60-70 trillion yen ($588-$686 billion) per year via aggressive asset purchases.

The central bank also left unchanged its assessment that Japan’s economy continues to recover moderately as a trend, while exports have been “more or less flat.”

Reuters