The Bank of Japan (BOJ) has revised upwards its growth targets for the economy and stuck to its view that the country is on track to achieve the bank's 2 percent inflation target, the central bank said in its twice-yearly economic outlook Thursday.
The BOJ now expects the Japan's economy to grow 1.5 percent in fiscal 2014, up from a previous target of a 13 percent expansion.
It kept its growth forecast for fiscal 2015 unchanged at 1.5 percent.
Earlier on Thursday, the BOJ made no changes to its monetary policy as widely expected, pledging to keep its massive stimulus launched in April to double the monetary base through asset purchases intact.
(Read more: Is Japan finally defeating its deflation demons?)
Japan's economy expanded for a third straight quarter in April-June as Prime Minister Shinzo Abe's stimulus policies, also known as 'Abenomics,' boosted business sentiment and household spending.