The Bank of Japan Friday left its core economic assessment in October unchanged from September, repeating that a moderate economic expansion continues. "Japan's economy is expanding moderately," the BOJ's latest report said, using the same phrase it used last month. As for the outlook for the economy, the BOJ repeated its optimistic view, saying "Japan's economy is expected to expand moderately." The latest report suggested that the BOJ's view on a continued economic recovery and improving prices remained unchanged. It also said that corporate sentiment remains favorable following the BOJ's September tankan survey released Oct. 2. The BOJ usually refers to business sentiment in a monthly economic report after the release of quarterly tankan survey. The central bank also left its assessment of such items as exports, capital spending and production, unchanged from the previous month. The BOJ continued to say that they are basically in an improving trend. Earlier Friday, the BOJ board voted unanimously to leave monetary policy unchanged. The BOJ's view for a continued economic recovery was underscored by the BOJ's tankan, released Oct. 2. The survey showed that Japanese business sentiment improved in September from three months ago, likely due to a weak yen, and companies remain positive about capital expenditure due to optimism regarding corporate earnings. On inflation, which is measured by consumer prices, the central bank said, "the year-on-year rate of change in consumer prices is projected to continue to follow a positive trend," indicating that the bank's view on future price rises remained unchanged. Japan's nationwide core consumer price index for August rose 0.3% from a year earlier. The result marked the third straight month of increases. But the BOJ slightly changed its view on the corporate goods price index following recent drops in crude oil prices. "The pace of increase in domestic corporate goods prices is expected to slow in the immediate future, due to the recent drop in international commodity prices," the latest report said. In September, the BOJ said domestic corporate goods prices are expected to continue increasing due to the effects of the rise in international commodity prices. The BOJ expects domestic demand as a main engine of the economic recovery to continue. "Domestic private demand is likely to continue increasing against the background of high corporate profits and the moderate rise in household income. In light of these increases in demand both at home and abroad, production is also expected to follow an increasing trend," the report said. The report also said, "The lending attitude of private banks has continued to be accommodative. Credit demand in the private sector has been increasing. Under these circumstances, the rate of increase in the amount outstanding of lending by private banks is accelerating. Lending by Japanese banks excluding Shinkin banks rose 1.6% on year in September, gaining for the eighth straight month, BOJ data showed Thursday, suggesting that corporate fund demand remains solid amid a continued economic recovery.