With a view to achieving the target, the Bank will continue conducting monetary policy in an appropriate manner, taking account of developments in economic activity and prices as well as financial conditions. IV. Challenges for Japan’s Economy I now would like to express my thoughts regarding the current situation for Japan’s economy from a longer-term perspective.
According to the Bank’s estimates, the potential growth rate has been in the range of 0.5-1.0 percent recently. Although the rate has risen compared to around 2010, it can be said that Japan’s growth potential has been sluggish. This is also an indication of the various challenges that Japan faces in achieving a rise in productivity.