First, reflecting the steady recovery of the world economy led by IT-related demand worldwide and the high growth of the Chinese economy, Japan’s exports are increasing substantially. A virtuous cycle is starting to operate in the economy initiated by the increase in exports, leading to an increase in production and corporate profits, and then to a recovery of business fixed investment.
In January 2013, the Bank introduced the price stability target of 2 percent in terms of the year-on-year rate of change in the consumer price index (CPI).