At present, barring any sudden shock, the Monetary Policy Committee (MPC) of SBP is of the view, as stated in the last monetary policy statement, that the adjustment related to interest rate and the exchange rate from previously accumulated imbalances has already taken place.
Considering that Japan’s current economic recovery is characterized as being led mainly by nonmanufacturing, the large share of manufacturing in the prefecture’s industrial structure might be the reason for the sluggish recovery compared with that of the country as a whole. It also should be noted that positive developments have been spreading.