For the first time since July, on Thursday, the Bank of Japan's policy board to some extent upgraded its economic view, as it kept its interest-rate target untouched. Japan's central bank generally voted to hold its chief unsecured overnight call loan rate unchanged at 0.1%, as was widely expected.

Furthermore, the BOJ, which in July had said that the economy had stopped worsening, confirmed the signs of recovery for domestic economic conditions.

The sentiment among large Japanese firms bettered during the July-September period from the previous quarter, as per a joint survey by the Ministry of Finance and Cabinet Office released Thursday.

In the third quarter, the index was 0.3, growing into positive territory from April-June's negative 22.4. The index measured the percentage of companies that think the economy will get better against those that think it will worsen.

The reporters were informed by Bank of Japan Gov. Masaaki Shirakawa, after the meeting that Japan's economy can gain in the long term, with stronger yen. He continued that stable foreign-exchange movements were desirable.

It should be noted that currency policy could be made by Japan's Ministry of Finance and not the central bank. However, Shirakawa's remarks reflect recent comments by new Finance Minister Hirohisa Fujii.

Shirakawa said: "If the yen becomes stronger, that could push prices down in the short term. But certainly, that may help boost the economy in the long run."