Real interest rates currently are well below the natural rate of interest, which is neutral to economic conditions, and are stimulating a wide range of economic activities. In this situation, the inflation mechanism driven by the positive output gap has been operating, as I mentioned earlier.
In order to achieve the price stability target, the Bank considers it important to ensure that the inflation mechanism continues to operate and thereby maintain the momentum toward achieving the target. This stance of monetary policy conduct by the Bank basically has not changed from a year ago, when I spoke at this meeting last time.