For experts' inflation expectations, the QUICK Survey, the Consensus Forecasts, and the inflation swap rate are used. Sources: Consensus Economics Inc., "Consensus Forecasts"; QUICK Corp., "QUICK Monthly Market Survey <Bonds>"; Bloomberg; Bank of Japan. II. Conduct of Monetary Policy Let me first outline the Bank's current monetary policy, based on the outlook for economic activity and prices that I have described.
The increase in the construction floor area has recently been weak, but it is following a moderate recovery trend. With respect to housing investment, housing starts in terms of the seasonallyadjusted annual rate reached a substantially high level in the fourth quarter 1996, partly reflecting the stepped-up demand ahead of the rise in the consumption tax rate. Later, they declined in reaction.