Taking these points into account, the Bank believes that, while Japan’s economy will temporarily decline immediately after the consumption tax hike, it will continue to grow above its potential growth rate as a trend with a virtuous cycle among production, income, and spending being maintained.
Concluding remarks As I have mentioned, so far, with the QQE steadily exerting its intended effects, Japan’s economy has been following a path toward achieving the 2 percent price stability target as expected. Of course, we are only halfway there and will steadily pursue the QQE.