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The deal signals that the bank is betting on continued robust consumer spending.
At the moment, robust consumer spending is keeping the economy growing, if extremely slowly.
Robust consumer spending was not just the result of attempts to beat the return of VAT to 17.5%, Sentance said.
"Robust consumer spending growth continues to support the economy," said Oriol Carreras, a research fellow at NIESR.
"That said, falling real incomes didn't get in the way of robust consumer spending growth over the last year.
The rebound was also driven by robust consumer spending, a slowing rate of inventory depletion and a recovery in exports and factory output.
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"Investment-wise, it is good because the vacancy rate is low and the sales are robust because consumer spending keeps going".
Few experts foresee a robust recovery in consumer spending until the unemployment rate starts heading down, perhaps sometime next year.
A number of factors contributed to the fourth-quarter performance, including robust consumer and government spending and a strong buildup in inventories at businesses.
Rising overseas demand, along with robust consumer and capital spending at home, is helping propel Japan toward its longest postwar expansion.
Kathleen Camilli, chief economic strategist at Tucker Anthony, said, Underneath all that noise, you still have very low unemployment, very good personal income growth and those things that translate into a very robust pace of consumer spending.
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