Then I will explain the recent conduct of monetary policy, mainly the thinking behind the price stability target and policy responses to the decline in crude oil prices. I. The current situation of and outlook for Japan’s economy  To start with, let me talk about the current situation of and outlook for Japan’s economy. Japan’s economy has continued its moderate recovery trend.
Regarding the outlook, it is likely to continue growing at a pace above its potential given that exports are expected to increase moderately and that domestic demand is likely to remain firm. Positive effects from the decline in crude oil prices and the government’s stimulus package that was formulated at the end of last year are likely to boost such favorable developments.