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The Bank of Japan (BoJ) Governor Haruhiko Kuroda played down the weak GDP data at a press conference on Thursday, saying the Japanese economy shrank in the third quarter due to a reduction in inventories.
He added that he expects business capital expenditure to improve.
Kuroda noted that underlying long-term inflation was picking up.
The BoJ government pointed out that terrorist attacks in Paris will have only limited impact on the economy.
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