 Japan's economy has shown steady signs of recovery |
Japanese business confidence has held steady in the past few months, helped by the weak yen and healthy profits. The quarterly Bank of Japan tankan survey of more than 10,000 companies showed the sentiment index for large manufacturers unchanged at 23.
The index for big non-manufacturers, including services, remained at 22.
Analysts said the results, which were in line with expectations, backed the view that Japanese interest rates would be raised only gradually.
Following the release of the latest tankan survey, the yen was near four-year lows against the dollar and near an all-time low versus the euro.
'Independent decision'
The results confirmed the government's view of a steadily-expanding economy, said Chief Cabinet Secretary Yasuhisa Shiozaki.
However, he said any interest rate decision would be left to the Bank of Japan.
"We think the BOJ will carry out policies that are in line with the government's economic policies, but that is their independent decision," Mr Shiozaki said.
The bank last raised its benchmark interest rate in February, lifting it from 0.25% to 0.5%.
Many analysts believe the central bank will raise rates in August, after July's parliamentary elections.
The OECD recently suggested in its world economic forecast that interest rates in Japan could rise, with its economy growing faster than that of the US.
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