And third, the Bank clarified its posture that it will strengthen policy coordination with the Government and work together. Introduction of “Price Stability Target” To begin with, let me talk about the Bank’s decision to set 2 percent in terms of the year-on-year rate of change in the CPI as the “price stability target.” Japan’s economy has been in deflation for a long period.
Behind that not only cyclical factors but structural factors have been at play.