Bank of Japan quarterly report

  • Japan's economy expanding moderately as a trend, though slow down in overseas growth affecting exports, output
  • consumer inflation moving in positive territory but remains on week note
  • medium – long-term inflation expectations have been more or less unchanged
  • Japan inflation to gradually accelerate toward 2%
  • risks are skewed toward downside for economy, prices
  • Japan's economy sustaining momentum for hitting 2% inflation, but momentum lacking strength
  • Japan's economy likely to continue expanding as a trend
  • no sign so far of excessively bullish expectations and asset markets, financial institutions activities
  • prolonged downward pressure on financial institutions profits from low rates could destabilize financial system
  • risk of financial system destabilizing not big for now as financial institutions have sufficient capital bases