In this situation, firms' moves to raise prices are likely to become more widespread. The actual rise in wages and prices is then expected to gradually weaken the mindset and behavior based on the assumption that wages and prices will not increase easily. Medium- to long-term inflation expectations are projected to rise gradually as a result.
I therefore consider that the momentum toward achieving the price stability target of 2 percent has been maintained. However, attention should be paid to the possibility that such momentum will be lost as downside risks regarding the global economy are significant. 3/5  BIS central bankers' speeches  III. Conduct of Monetary Policy Let me now turn to the Bank's monetary policy.