On the basis of this careful analysis and discussion at the MPM, we came to the conclusion that the economy was likely to continue to experience a moderate expansion with a virtuous circle of production, income, and spending in place. As referred to earlier, the world economy continues to expand, with growth more balanced as regional economies gain momentum.
Indeed, this was the consensus view among delegates at the G-7 meeting in February. Domestically, newly available figures for the fourth quarter of 2006 indicated that business fixed investment was increasing on the back of high corporate profits. The sluggishness in private consumption seen last summer was judged a merely temporary phenomenon, and a gradual increasing trend was reaffirmed.