The second stage is the transmission of effects from the financial conditions to economic activity and prices; in other words, the extent to which firms and households actually take advantage of the accommodative financial conditions to actively increase their investment and spending. In the following, I will discuss the role of the Bank’s two programs in terms of these two stages.
However, from early autumn onward, with further progress in the reconfiguration of supply chains – which have been seriously disrupted, particularly in the automobile industry – and easing in electricity supply constraints, production and exports are likely to increase again against the backdrop of steady growth in overseas economies.