In addition to the trade friction, uncertainties concerning overseas economies include various factors such as the consequences of the negotiations on the United Kingdom's exit from the EU, the effects of stimulus measures in China, and geopolitical risks in the Middle East. Uncertainties surrounding developments in emerging economies also are of concern.
Thus, in a situation where downside risks concerning overseas economies seem to be increasing, it is necessary to bear in mind the possibility that the pick-up will lag behind by longer than expected. The Bank judges that it is becoming necessary to closely examine whether overseas economies will pick up while the aforementioned firmness in domestic demand is being maintained. II.