In order for the public to be able to enhance the quality of life in a sustainable manner, it is absolutely necessary that Japan’s growth potential be strengthened through an improvement in the productivity growth rate and the potential growth rate. 3.
Future role of monetary policy If Japan’s economy is able to achieve strong growth with further positive changes in economic structure going forward, households’ and firms’ medium- to long-term inflation expectations will rise to around 2 percent, and this will support the observed inflation rate continuing to be stable at around 2 percent.