However, when the expectation prevails that low interest rates will continue for a long period of time, it is likely to encourage leverage and maturity mismatching between the assets and liabilities of financial institutions. In that sense, I believe that in the conduct of monetary policy central banks also need to be attentive to the accumulation of financial imbalances.
However, the supply-demand balance has been deteriorating greatly, reflecting the sharp deterioration in economic conditions from the autumn of last year, and the pace of improvement in the supply-demand balance is expected to be slow, reflecting the aforementioned economic outlook. Therefore, the downward pressure on prices is likely to persist for a long period.