However, given that the recent pace of increase in prices is still moderate and there is lingering uncertainty regarding overseas economies, the Bank, for the time being, should support economic entities’ initiatives by persistently pursuing monetary easing under the current policy framework. III. Challenges Facing Japan’s Economy Japan’s economy has recently been recovering steadily.
Yields on sovereign debt of the major countries are very low, the lowest on record in some cases. Spreads on investment-grade and financial corporate bonds have reached multi-year lows. Nowhere is this phenomenon more striking than in Europe. Two years ago, some major European countries faced a crisis of sovereign credit.