Looking ahead, as the aggregate supply and demand balance in the economy is expected to improve and inflation expectations to rise further, the year-on-year rate of change in the CPI is likely to reach close to the price stability target of 2 percent from the latter half of fiscal 2014 through fiscal 2015.
While we recognize that lifting inflation expectations through monetary policy is an extremely ambitious approach in unchartered waters, we would like to meet the longstanding challenge of overcoming deflation on all counts by steadily gaining the fruits of pursuing the QQE. Concluding remarks In conclusion, I will touch on the economies of Shimane Prefecture and the San-in region.