• Risk of price growth undershooting BOJ forecast
• Risk to Japan economy – Europe debt woes, US fiscal cliff, China slowdown
• Weakness in manuf. sector hurt job mkt for time being
• Weak exports & output may cause some firms to postpone capex
• Exports. output likely to pick up as overseas economies emerge from slowdown
• Output gap to remain relatively large for time being but eventually improve moderately
• Overcoming deflation requires collective effort by govt, BOJ & private firms
• Will continue to consider how BOJ can best contribute to beating deflation