Given the current situation where prices and inflation expectations have remained sluggish, I think that it is important to sustain the momentum toward achieving the price stability target through maintaining a positive output gap for as long as possible by keeping interest rates at sufficiently low levels for a prolonged time.
The growth rate was above the potential growth rate, which is estimated to be in the range of 0.5-1.0 percent.1  With regard to the outlook, Japan's economy is likely to continue its moderate expansion.