16  Japan's Economy and Monetary Policy Speech at a Meeting with Local Leaders in Shizuoka  February 2, 2023 WAKATABE Masazumi Deputy Governor of the Bank of Japan  Chart 1  Introduction  Highlights of the January 2023 Outlook Report (1) Japan's economy is likely to recover. (2) Inflation is likely to be relatively high in the short run and then decelerate.
(3) There are high uncertainties, including developments in overseas economic activity and prices, and market developments warrant attention. (4) The Bank will continue with powerful monetary easing. 1  Chart 2  I. Current Situation and Outlook for the Economy: Is This Time Any Different?