In addition, EMEs have confronted a world economic environment characterized by lower rates of global potential growth, a decline in commodity prices, a growing anti-globalization sentiment and events of a geopolitical nature. The combination of these factors has led to a situation of acute uncertainty.
With respect to monetary aggregates, the growth in M2+CDs, which had picked up from the end of 1997, slowed in March and April. Also, the growth in broadly-defined liquidity has been declining since the middle of 1997. 1 This report was written based on data and information available when the Bank of Japan Monetary Policy Meeting was held on May 19, 1998.