The Bank will continue to steadily pursue QQE and solidly maintain accommodative financial conditions. In this circumstance, firms and households are expected to be more proactive in economic activity, Japan’s economy is likely to continue growing at a pace above its potential, and the price stability target of 2 percent certainly would be achieved.
Today, I would like to explain the Bank’s view on the outlook for economic activity and prices, as well as on its monetary policy while touching on the Outlook Report. I would first like to elaborate on the Bank’s baseline scenario regarding the outlook for economic activity and prices, which is considered most probable, and then touch on risks to the baseline scenario. I.