We intend to communicate clearly and consistently on macro-prudential policy in order to improve people’s understanding and expectations, and to support our accountability for the implementation of macro-prudential policy and its effects. Emerging risks to financial stability Unsurprisingly our focus in recent times has been on our main vulnerabilities: household indebtedness, the dairy sector and our foreign liabilities.
The Bank of Japan’s April report of recent economic and financial developments Bank of Japan communication, 13/4/98. Japan’s economy remains stagnant reflecting weak domestic demand, such as household expenditures. In addition, corporate sentiment has been deteriorating across industries, indicating strong downward pressures on economic activities.