The Japanese economy is steadily recovering and the trend is expected to continue supported by a positive cycle of production, income and spending, Japan's central bank chief has said.

"Exports and industrial production continue to rise while high profits allow companies to increase capital investment," Bank of Japan Governor Toshihiko Fukui Wednesday was quoted as saying by local newspapers.

On addressing a one-day quarterly meeting of the central bank's branch managers, Fukui said Japanese people's incomes are also gradually increasing, reflecting improvement in the employment conditions and wage hikes, and personal spending is also on a rising trend.

Looking ahead, Fukui said exports are expected to keep rising, spurred by expansion of the overseas economies, and domestic private demand is likely to continue to grow on high corporate profits and gradual rises in incomes.

He promised at the same time that the central bank will steer monetary policy appropriately depending on economic and price conditions to realize a sustainable economic growth under price stability.

Source: Xinhua