Through my explanation, I hope to gain your better understanding on the Bank’s aims in its monetary policy management. II. Recent Monetary and Economic Conditions and the Bank’s Monetary Policy Management A. The Present Condition of and the Outlook for the Domestic Economy Let me first discuss the domestic economic condition.
Japan’s economic growth has been decelerating since April 1997 partly reflecting the impact of the rise in the consumption tax rate that took place that month. In addition to the continuing decrease in public investment since autumn 1996, household spending such as personal consumption and housing investment has also dropped significantly since April 1997.