Highlights of the Outlook for Economic Activity and Prices (October 2023)
Outlook for Economic Activity and Prices
For further details, please see "The Bank's View" and the full text of the Outlook for Economic Activity and Prices (Outlook Report) on the following pages:
Japan's economy is likely to continue recovering moderately, supported by factors such as an increase in consumption, although it is expected to be pushed down by a slowdown in the pace of recovery in overseas economies.
Underlying inflation is likely to increase gradually toward achieving the 2 percent target, while a virtuous cycle between wages and prices is needed.
Underlying CPI inflation is likely to increase gradually toward achieving the price stability target of 2 percent, while this increase needs to be accompanied by an intensified virtuous cycle between wages and prices.
The Bank will continue with powerful monetary easing.
The Bank aims to achieve the price stability target of 2 percent in a sustainable and stable manner, accompanied by wage increases. It will patiently continue with monetary easing, aiming to support Japan's economic activity and thereby facilitate a favorable environment for wage increases.
There are high uncertainties for Japan's economic activity and prices.
There are extremely high uncertainties surrounding Japan's economic activity and prices, including developments in overseas economic activity and prices, developments in commodity prices, and domestic firms' wage- and price-setting behavior. In addition, due attention is warranted on developments in financial and foreign exchange markets and their impact on Japan's economic activity and prices.
The Bank decided to further increase the flexibility in the conduct of yield curve control.
The Bank decided to increase the flexibility in the conduct of yield curve control, so that long-term interest rates will be formed smoothly in financial markets in response to future developments.
Policy Board Members' Forecasts
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