Based on these discussions, members agreed that,as exports continued to increase, Japan's economy would continue to experience a relatively long period of growth, albeit at a moderate pace, supported by steady domestic demand.
Against this background, the Bank's assessment is that Japan's economic conditions have deteriorated significantly and are likely to continue deteriorating for the time being.
Japan's economy has continued to recover moderately with a virtuous cycle from income to spending operating in both the corporate and household sectors, although exports and production are affected by the slowdown in emerging economies.
In the first half of 2012, Japan's economy registered the highest growth rate among the advanced economies. The situation changed rapidly since the summer, however, and the economy is currently weakening somewhat.
Since then, Japan's economy has improved significantly, and on the price front, the year-on-year rate of change in the CPI excluding energy and fresh food generally has been in positive territory for about five years.
As described above, the improvement in Japan's economy was becoming more distinct. Firms' sentiment and profits continued to improve, and business fixed investment was starting to pick up.
As described above, the improvement in Japan's economy was becoming distinct, and business fixed investment was increasing reflecting improvement in corporate sentiment and profits.
As I have mentioned, the real interest rate, having declined to the record low level, stimulated domestic demand,resulting in a moderate recovery in Japan's economy and an improvement in the underlying trend in inflation.
Overall, it can be envisaged that the stabilization of Japan's economy will become more secured as the increase in exports and production, through the improvement in corporate profits, will underpin domestic private demand.
As for Japan's economy, while exports have been picking up at a somewhat slower pace, domestic demand, notably private consumption, has been firm and overseas economies are picking up moderately.
Japan's economy has continued to recover moderately as a trend, albeit with some fluctuations due to the consumption tax hike, and financial conditions among firms and the employment and income situation in the household sector have generally improved.
The Japanese economy was recovering at a moderate pace and was expected to continue doing so. However, attention should be given to the effects on the world economy of developments in the trade friction, the uncertainties regarding overseas economies, and the effects of volatility in financial markets.
Japan's economy had not yet got out of its severe situation, as the momentum for a recovery in private demand remained weak. However, activities continued to improve moderately due to the influence of the economic recovery in Asia as well as the effects of various policy measures.
Japan's economy has continued to recover moderately, with a virtuous cycle from income to spending operating in both the household and corporate sectors, although exports and production have been affected by the slowdown in emerging economies.
Japan's economy is expected to deviate slightly above the outlook presented in theOutlook for Economic Activity and Prices(the Outlook Report) released in October last year, as both domestic and external demand continue to increase steadily.
Based on the above developments, it was judged that Japan's economy continued a recovery trend, although there seemed to be somewhat weak movements, mainly in production, and the economy was expected to continue to recover.
As explained, Japan's economy registered relatively high growth in the first half of 2012, supported by the firmness in domestic demand, but the pick-up in economic activity has come to a pause, reflecting the developments in overseas economies.
Japan's economy has continued its moderate recovery trend, with a virtuous cycle from income to spending operating in both the household and corporate sectors, although exports and production have been sluggish due mainly to the effects of the slowdown in emerging economies.
Opinions on Economic and Financial Developments Economic Developments Japan's economy has been on a moderate expanding trend, with a virtuous cycle from income to spending operating, although exports and production have been affected by the slowdown in overseas economies.
Japan's economy has been improving on the back of the increase in exports and production brought about by the recovery in overseas economies and due to the effects of policy measures targeting durable consumer goods, but it seems that the recovery has been pausing since early autumn.
Japan's economy is thus expected to gradually pick up. However, uncertainties remain over the economic outlook, such as downside risks associated with overseas economies, and I am paying greater attention to the downside risks.
Based on such recognition, at the Monetary Policy Meeting held last week,the Bank made an assessment,"Japan's economy is picking up mainly due to various policy measures taken at home and abroad, although there is not yet sufficient momentum to support a self-sustaining recovery in domestic private demand.
Based on the above discussions, members agreed that adjustments in Japan's economy, mainly in production, were likely to continue for the time being and it was becoming unlikely that the mechanism of income generation starting from the corporate sector would continue to operate.
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