Opinions on Economic and Financial Developments:

• Japan's economy is expanding moderately, with a virtuous cycle from income to spending operating. Going forward, it is likely to continue expanding, mainly against the background of highly accommodative financial conditions and the underpinnings through government spending.

• Japan's economy is expanding moderately. In fiscal 2018, the economy is likely to continue growing at a pace above its potential. From fiscal 2019 onward, the growth pace is projected to decelerate temporarily, due mainly to the effects of the scheduled consumption tax hike, and recover gradually thereafter.

• As uncertainties for the time being, it is necessary to pay attention to the effects on economic activity of the heavy rain in July and the record-breaking heat wave continuing nationwide.

• With regard to the risk balance in the global economy, there likely are growing downside risks stemming from trade friction between such economies as the United States and China as well as from currency fluctuations.

• The effects on the global economy of the depreciation of emerging economies' currencies as well as the developments in policy rate hikes in those economies warrant close attention.