Thirdly, many indicators of adequacy of reserves do, to a significant extent, capture the potential for drawdown by non-residents while the factors governing drawdown by residents through capital flight are not easily assessed. Hence, the domestic perceptions of level of reserves add to the comfort in withstanding drawdown through capital flight, and experience indicates that crisis of confidence in currency often originates among residents.
However, risks to both economic activity and prices are skewed to the downside, particularly those regarding overseas factors. Moreover, the projections for prices in the October 2016 Outlook Report have been revised slightly downward compared with those in July, and the timing of the year-on-year rate of change in the CPI reaching around 2  5  percent will likely be around fiscal 2018.