Of course, there are significant uncertainties over the outlook for the economy. The COVID-19 pandemic continues on a global basis, and concern about a second wave of the virus has increased recently. Under these circumstances, there is a risk that the second-round effects of COVID-19 may push down the economy considerably. There are two important points in particular.
The first is to ensure corporate financing. To this end, it is essential to maintain financial system stability and accommodative financial conditions, thereby avoiding further downward pressure on the real economy from the financial side. The second point is whether firms’ and households’ growth expectations will decline and lead to cautious attitudes toward spending.