Outlook With regard to the outlook, the Bank's baseline scenario is as follows: Japan's economy is likely to follow an improving trend with economic activity resuming and the impact of COVID-19 waning gradually, but the pace is expected to be only moderate while vigilance against COVID-19 continues.
This wide-scale impact makes it inappropriate for dealing with sector-specific imbalances, but potentially valuable in addressing imbalances that have spread to multiple sectors of the economy. Needless to say, clarifying the role that monetary policy should play in supporting financial stability is an important issue to be considered in the renewal of the inflation-targeting framework. Thank you for your attention.