Today, before exchanging views with you, I would like to explain the Bank’s view on the current situation of and outlook for economic activity and prices, as well as its monetary policy. I. Economic activity in Japan and abroad  Current situation of and outlook for Japan’s economy Let me start by discussing the current situation of and outlook for Japan’s economic activity.
Japan’s economy has continued to recover moderately with a virtuous cycle from income to spending operating in both the corporate and household sectors, although exports and production are affected by the slowdown in emerging economies. That is, in the corporate sector, profits have marked a record high and firms’ fixed investment stance has been positive.