Accordingly, downward pressure on production arising from inventories is expected to be fading. Given the positive factors such as the subsiding downward pressure on exports and production together with the negative factors such as intensified adjustments spreading to the household sector, Japan's economy will enter a critical phase in the near future in terms of finding a way to recover.
BIS Review 7/2002  1  B. Adoption of the New Monetary Easing Framework  Next, I will outline the Bank's conduct of monetary policy since the beginning of last year. In early 2001, we forecasted that Japan's economy would have to undergo severe adjustments, given the simultaneous slowdown of economies worldwide.