"Japan's economy is emerging from the current deceleration phase. Exports and production are showing signs of resuming their uptrend. Business fixed investment is picking up. The employment and income situation has remained severe, but the degree of severity has eased somewhat. Private consumption is showing signs of picking up. Housing investment has started to pick up. On the other hand, public investment is declining.
Japan's economy is expected to return to a moderate recovery path. However, the damage of the earthquake has been geographically widespread, and thus, for the time being, production is likely to decline and there is also concern that the sentiment of firms and households might deteriorate." (continue reading at Bank of Japan)
Speaking of monetary policy.
"The Bank of Japan added 8 trillion yen ($98 billion) to the banking system today in Tokyo. Governor Masaaki Shirakawa pledged yesterday at a news conference in Tokyo to keep pumping cash as needed after adding a record 15 trillion yen to the economy. The central bank yesterday also doubled its asset- purchase program to 10 trillion yen." (continue reading at Bloomberg)