Seen from Danmarks Nationalbank’s perspective, the act on maturity extension has served its purpose. A robust mechanism has been introduced for handling the mortgage banks’ 2  BIS central bankers’ speeches  refinancing risk – also in the event of resolution. The probability that the tail risks would materialise was very small, but the potential implications were huge.
Output gap, potential economic growth rate, and outlook for the growth rate  According to the estimates the Bank presented in the April 2015 Outlook Report, the potential growth rate of Japan’s economy, which represents – from the supply side – the pace of growth that is consistent with the economy’s growth potential, has been around 0.5 percent or lower, and thus remains at a low level.