As a result of the revision, the rate of inflation will likely remain more or less at around 1 percent for the time being, then start to pick up gradually toward the first half of fiscal 2015 – suggesting some delay in the timing of a pick-up in inflation.
My projection – for fiscal 2015 and 2016 was also revised downward – but very moderately – relative to my July interim assessment. The downward revision was small because the effects of the expanded QQE were incorporated. Without such a policy action, the downward revision would have been larger.