*  *  *  Mr. Chairman,  The global economy and financial markets The continued expansion in world GDP in 2006, with growth crossing the 5 percent mark, points to the emergence of a new phase – one that is more diversified with most regions posting higher growth than in the previous year.
In that regard, when the natural rate of interest increases sufficiently, the possibility that the policy rate will hit the zero lower bound again declines and the resilience of Japan's economy is likely to increase. III.