C.  Uncertainties about the outlook  The outlook I have just mentioned is the scenario for economic activity and prices considered to be the most likely by the Bank, or the baseline scenario.
In the April 2012 Outlook Report, the Bank raised the following four risk factors concerning this outlook as warranting attention: developments in overseas economies, especially the European debt problem; uncertainty with regard to reconstruction-related demand; possible changes in firms’ and households’ medium- to long-term growth expectations reflecting the shift of production sites to overseas as well as problems concerning the supply and demand of electric power; and problems regarding Japan’s fiscal sustainability.