Although the momentum toward achieving the 2 percent price stability target has been maintained, it continues to lack firmness. The Bank will make policy adjustments as appropriate, taking account of developments in economic activity and prices as well as financial conditions, with a view to maintaining the momentum toward achieving the price stability target. III.
Reinforcement of the Virtuous Cycle As I mentioned earlier, the challenge facing Japan's economy is to further reinforce the virtuous cycle from income to spending in both the household and corporate sectors. Let me reiterate that consumption has not increased as much in the household sector, considering the tight labor market conditions and the increase in employee income.