Three-Tier System. JGB Yield Curve

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1 The outstanding balance of current accounts at the Bank <February 1> Above Above Increase at an annual pace of about under the current guideline -.1% Three-Tier System % <Future amount> Policy-Rate Balance About 1-3 Macro Add-on Balance About + About per year Chart 1 About 1 +.1% Basic Balance About 1 Time Note: A positive interest rate of.1 percent is applied to the "Basic Balance" after deducting required reserves. A zero interest rate is applied to the "Macro Add-on Balance," which refers to the sum of the amounts outstanding of the required reserves and the Bank's provision of credit through the Loan Support Program and other facilities. A negative interest rate of minus.1 percent is applied to the "Policy-Rate Balance." JGB Yield Curve Chart % Just before the introduction ( December 1) Just before the expansion (3 October 1) Just before the introduction with a ( January 1) Recent ( April 1) Source: Bloomberg. year

2 tril. yen Source: Bank of Japan. Economic Situation in European Countries Sweden % EUR/SEK Net Profits 11 1 Shinkin banks Regional banks Major banks Denmark % EUR/DKK Note: indicates year-on-year growth rate of real GDP. Source: Bloomberg Financial Institutions' Profits tril. yen 199 Shinkin banks Regional banks Major banks 199 Net Profits from Core Business Chart 3 Euro Area % EUR/USD Chart 1 1 Switzerland % EUR/CHF

3 Production,, and Investment Chart Dec. 1 s.a., CY 1 = Industrial production World trade volume Apr. 13 Apr. 1 Oct. 1 with a Jan. 1 Synthetic Index Aggregate supply of capital goods Real exports Sources: Ministry of Economy, Trade and Industry, "Indices of Industrial Production," "Indices of Industrial Domestic Shipments and Imports"; Cabinet Office, "Synthetic Index"; CPB Netherlands Bureau for Economic Policy Analysis, "CPB World Trade Monitor"; Bank of Japan, "Real Exports and Real Imports." Number of Employees and the Unemployment Rate with a Dec. 1 Apr. 13 Apr. 1 Oct. 1 Jan. 1 s.a., CY 1 = 1 s.a.; %. 9 CY 1 13 Number of regular employees Number of full-time employees Number of part-time employees Unemployment rate Sources: Ministry of Health, Labour and Welfare, "Monthly Labour Survey"; Ministry of Internal Affairs and Communications, "Labour Force Survey." Chart

4 Regional Active Job Openings-to-Applicants Ratio Chart Dec. 1 s.a., times Apr. 13 Apr. 1 Oct. 1 with a Jan. 1.5 CY 1 Hokkaido 13 Tohoku 1 15 Minami-Kanto 1 Kita-Kanto and Koshin Hokuriku Tokai Kinki Chugoku Shikoku Kyushu All Japan Source: Ministry of Health, Labour and Welfare, "Employment Referrals for General Workers." Hourly Wages Chart Dec. 1 Yen/h Apr. 13 Apr. 1 Oct. 1 with a Jan. 1 Yen/h Regular employees Full-time employees Part-time employees Note: The solid lines and dashed lines denote nominal hourly wages and real hourly wages, respectively. Calculated as the total cash earnings per employee divided by the total hours worked. Excluding the effects of the consumption. Seasonally adjusted by X-11. Source: Ministry of Health, Labour and Welfare, "Monthly Labour Survey."

5 Wages, Employment, and Income Chart 9 1 Dec. 1 s.a., CY 1 = 1 Apr. 13 Apr. 1 Oct. 1 with a Jan CY Number of regular employees Total cash earnings Employee income Real employee income Note: Employee income is calculated as the number of regular employees multipled by total cash earnings. Real employee income is deflated by the CPI (all items less fresh food). Dashed line denotes real employee income excluding the effects of the consumption. Sources: Ministry of Health, Labour and Welfare, "Monthly Labour Survey"; Ministry of Internal Affairs and Communications, "Consumer Price Index," "Family Income and Expenditure Survey." 115 s.a., CY 1 = 1 Private Chart Synthetic Index Estimates from supply-side data Family Income and Expenditure Survey Note: Estimates from supply-side data are weighted averages of the aggregate supply of consumer goods and broad-ranging personal services excluding retail trade from Indices of Tertiary Industry Activity, by using the share of SNA statistics. Sources: Ministry of Economy, Trade and Industry, "Indices of Industrial Domestic Shipments and Imports," "Indices of Tertiary Industry Activity"; Cabinet Office, "Synthetic Index"; Ministry of Internal Affairs and Communications, "Family Income and Expenditure Survey."

6 Breakdown of the CPI (All Items Less Fresh Food) Chart 11. % Dec. 1 Apr. 13 Apr. 1 Oct. 1 with a Jan Contribution of CPI (all items less fresh food and energy) Contribution of CPI (energy) CPI (all items less fresh food) CPI (all items less fresh food and energy) Source: Ministry of Internal Affairs and Communications, "Consumer Price Index."

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