2016 has been a tough year, both for businesses and the Bank. Fortunately, the headwind is turning into a tailwind. I am convinced that the coming new year will be one in which Japan's economy will take a big step forward toward overcoming deflation. I would like to close by expressing my hope that your business initiatives will make this happen.
In fact, central bankers have long recognized that this “expectations channel” operates most effectively when the public understands how policymakers expect economic conditions and monetary policy to evolve over time, and how the central bank would respond to any changes in the outlook.