BoJ: Japan's economy is in a positive trend

The Bank of Japan announcement today and major headlines are here:

Bank of Japan announcement out now

More (via the Wall Street Journal's quick take on the announcement ... gated) ...

BOJ signaled it mostly believes the Japanese economy has finally overcome a hit from the sales tax hike

BOJ removed for the first time its reference to the tax increase from the main language in its monthly economic assessment:
"Japan's economy has continued its moderate recovery trend," the BOJ said in its policy statement. A month earlier, the bank said the economy was on a moderate recovery trend and that the effects of the tax increase had been "waning on the whole."

In its sector-by-sector analysis, the BOJ also raised its assessment of exports and industrial production, while it took a slightly more cautious tone on consumer spending

On inflation:

Excluding the impact of the sales tax, Japan's core consumer price index rose by 0.5% in December
Lowest in over a year
Officials have so far signaled that the central bank may hold unless Japan's "trend inflation" rate (which they measure by inflation expectations) shows signs of flagging
If the underlying price trend continues to point upward, the core inflation rate could rebound dramatically once oil prices stabilize ... people close to the BOJ say
Majority of private economists say the BOJ will be forced to act, possibly in as early as April, and will still miss the price target

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