Therefore, the Bank of Japan judges that the momentum for self-sustaining recovery in private demand remains weak while Japan’s economy is picking up. As for the outlook, the pace of improvement in Japan’s economy is likely to remain moderate until around the middle of fiscal 2010, as pressures for adjusting employment and wages are likely to remain.
1  -2Short-Term Funding Market Vulnerabilities The COVID shock brought to the fore important vulnerabilities in the systemically important short-term funding markets that had previously surfaced in the Global Financial Crisis. Signs of acute stress were readily apparent in intermediaries and vehicles with structural funding risk, particularly in prime money market funds (MMFs).