The developments in Japan’s economy and prices I would like to start off with the recent developments in Japan’s economic activity and prices. The Bank of Japan introduced quantitative and qualitative monetary easing (QQE) in April this year with a view to bringing Japan’s economy out of deflation, which has lasted for nearly 15 years.
In the subsequent eight months, the Bank has been steadily pursuing this policy. Positive developments have been spreading in financial markets and the real economy, as well as in people’s mindset and expectations. The QQE has steadily been exerting its intended effects. Japan’s economy is recovering moderately, with a positive spillover from income to expenditure in the household and corporate sectors taking course.