The governor of the Bank of Japan (BoJ) Haruhiko Kuroda has claimed the Japanese economy is on track to recovery steadily, as signs of a pick up in inflation emerged.
According to Mr Kuroda, this has been as a result of the central bank's aggressive monetary stimulus.
He reiterated the central bank's commitment to maintain its quantitative easing monetary policy until its two per cent inflation target is reached at a quarterly meeting with the BoJ's regional branch managers, Reuters reports.
Consumer inflation is another area the BoJ is optimistic about. It has largely remained flat in recent months, but Mr Kuroda believes it will gradually turn around once improvements start to materialise in the economy.
Exports from Japan have been promising as a result of the weakened yen, with automobile sales in the US being a major factor in this.
Japan's economy grew at a year-on-year rate of 4.1 per cent in the first quarter of 2013.
By Asim Shah