•Japan's economy is likely to continue expanding on the back of highly accommodative financial conditions and the effects of the government's large-scale stimulus measures, with growth rates of overseas economies increasing moderately, and maintain growth at a pace above its potential mainly though fiscal 2018. In fiscal 2019, the economy is expected to continue expanding, although the growth pace is projected to decelerate due to a cyclical slowdown in business fixed investment and the effects of the scheduled consumption tax hike. •The recent developments in the consumer price index (CPI, all items less fresh food) ... (full story)