Given the impact of COVID-19, it is likely for the time being that the output gap, an indicator of labor and capacity utilization, will remain rather deep in negative territory and the pace of its improvement will be moderate. It also is likely to take time before medium- to long-term inflation expectations, which are weakening somewhat at present, start to rise again.
Therefore, I consider it necessary to be strongly aware of the possibility that it will take more time to achieve the price stability target. In light of these points, it is necessary to assume that monetary easing will be prolonged further. In other words, monetary policy should be conducted while taking into account such prolongation.