In the short term, in particular in the euro area, an expansionary monetary policy remains of key importance to supporting aggregate demand and attaining price stability, and to preserving financial stability from debt-deflationary risks. As to the longer term, it is difficult to foresee how the factors affecting real interest rates will evolve; and this uncertainty bears on their current low level.
Moreover, the positive impact on domestic production of the recovery of overseas economies, especially of Asian economies, is likely to continue for some time. By contrast, it is highly probable that housing investment will remain flat for the time being. In addition, under cautious sales outlook, firms are expected to continue corporate restructuring to improve their profitability.