In the corporate sector, business fixed investment has clearly increased against the backdrop of the improvement in corporate profits. The recently released June Tankan survey (Short-Term Economic Survey of Enterprises in Japan) indicates that developments in business fixed investment plans are favorable, even in the manufacturing sector, which has been lagging. While domestic demand remains firm, exports have recently been sluggish.
While you have heard me say that the BSP will not necessarily move in sync with the Fed and that our courses of action remain data dependent, we must be mindful of heightened volatility in the FX market during this transition to Fed normalization. We also need to be watchful of changes in global growth and inflation dynamics.