BOJ, Japan's central bank has upgraded its economic stance after it noticed country's worst post-war recession to be easing.

Improvements in industrial output and exports have depicted signs of the country's worst postwar recession's easing.

But it cautioned that Japan should be in no hurry to end its extraordinary policy measures.

In a statement in Tokyo, BOJ said, "Japan's economic conditions, after deteriorating significantly, have begun to stop worsening." It further stated, "In the coming months, Japan's economy is likely to show clearer evidence of leveling out over time."

At its 2-day policy review, the BOJ kept interest rates on hold at 0.1 %.

On the other hand, analysts are of the view that the policy makers may perhaps employ down exit strategies until they are convinced that economic expansion is sustainable.

Masaaki Kanno, chief economist in Tokyo at JPMorgan Chase & Co. is also of the view that the central bank is still far away from an exit.

As far as yen, the currency of the country is concerned, it rose to 96.64 per dollar in Tokyo from 96.74 before the announcement. 

It was in December, when lowering the key rate to 0.1 %, the central bank began to buy commercial paper and corporate bonds from lenders to channel cash to companies.

As the average issuance rate for 3-month commercial paper fell to 0.39 % in May from a crest of 1.48 % previous November, corporate bond issuance is also coming back to life. 

Toyota Motor Corp is set to pay on its new 10-year bonds a coupon just 24 basis points above the benchmark government bond yield, far below a 75-basis-point premium it had to pay in Feb.

But market is tight for firms with lower credit ratings as they are still careworn to sell corporate bonds.