Haruhiko Kuroda: Japan's economy and monetary policy

Speech by Mr Kuroda Haruhiko, Governor of the Bank of Japan, at a meeting with business leaders, Nagoya, 14 November 2022.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Introduction

It is my great pleasure to have the opportunity today to exchange views with a distinguished gathering of business leaders in the Tokai region. I would like to take this chance to express my sincerest gratitude for your cooperation with the various activities of the Bank of Japan's Nagoya Branch. The Bank makes a projection for Japan's economic activity and prices every quarter, which is released in the Outlook for Economic Activity and Prices (Outlook Report). Today, I would like to talk about the Bank's view on Japan's economic activity and prices and explain its thinking behind the recent conduct of monetary policy, with reference to the latest Outlook Report decided at the Monetary Policy Meeting held in October.

I. Economic Developments

Let me start by talking about economic developments. Japan's economy has picked up as the resumption of economic activity has progressed while public health has been protected from the novel coronavirus (COVID-19). Various factors have exerted downward pressure on the economy, including COVID-19, high commodity prices, and rising consumer prices. However, both the household and corporate sectors have remained resilient.