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Weak data to test BOJ's rosy economic view, policy on hold
The Bank of Japan will maintain its existing stimulus policy and optimistic economic view when it meets on Thursday, sources say, preferring to take more time to gauge whether a run of weak data is sufficient to threaten a fragile recovery. But signs of prolonged disruption from a sales tax hike in April are beginning to sap the conviction of many central bankers that the economy will rebound steadily from a severe second-quarter contraction caused by the higher levy. While the BOJ is likely to stick to its assessment that the economy is recovering moderately, pessimists on the board may propose offering a bleaker ... (full story)