At this point, I will discuss recent developments in overseas economies and Japan’s exports, business fixed investment, the employment and income situation, and inflation expectations, all of which are likely to have a significant effect on the outlook for economic activity and prices. 1.
Given strong monetary and credit growth in a context of ample liquidity, a cross-check of the outcome of the economic analysis with that of the monetary analysis confirms that upside risks to price stability prevail over the medium term. A further adjustment of interest rates was therefore warranted.