That is, the Bank has pursued powerful monetary easing measures so that short- and long-term interest rates will be stable at low levels. In this situation, an expansion in fiscal spending is likely to have greater stimulus effects without leading to a rise in interest rates. It is therefore expected that the latest stimulus package will underpin the economy through the synergy effects.
Taking these points into account, it is projected as a baseline scenario that the recovery trend in the overall economy will gradually become evident through next year, as downward pressure stemming from supply-side constraints and COVID-19 wanes and the effects of the economic stimulus package materialize. Risk Factors However, as I mentioned at the outset, the outlook for Japan's economy entails extremely high uncertainties.