Japan's financial system has so far been generally stable, and in that regard the Bank does not judge that the risk of the economy falling into a deflationary spiral has increased. And the second is whether firms and households' inflation expectations in the medium to long term decline.
Various survey results and market developments suggest that firms and households' expectations for inflation in the medium to long term have so far been stable. By also taking into account those points, the Bank has been closely monitoring price developments. IV.