On this point, the Bank makes clear that it will continue expanding the monetary base until the year-on-year rate of increase in the observed CPI (all items less fresh food) exceeds 2 percent and stays above the target in a stable manner. I would like to summarize economic and price developments in Japan.
The economy has continued its moderate expansion, but prices have continued to show relatively weak developments, mainly against the background that firms’ wage- and price-setting stance has remained cautious. Regarding the outlook for prices, risks are skewed to the downside, especially concerning developments in medium- to long-term inflation expectations, and this warrants attention. Financial conditions are highly accommodative.