Hitoshi Suzuki: Economic activity, prices, and monetary policy in Japan

Speech by Mr Hitoshi Suzuki, Member of the Policy Board of the Bank of Japan, at a meeting with business leaders, Kumamoto, 29 August 2019.

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

I. Recent Economic and Price Developments

A. Developments in Overseas Economies

I would like to begin my speech by talking about overseas economies.

Overseas economies have been growing moderately on the whole, although the business sentiment of manufacturing firms has begun to deteriorate in advanced economies in particular, amid protectionist trade policy in some countries and the heightening of geopolitical risks, as well as the accompanying uncertainty regarding global financial markets. Slowdowns are expected to continue for the time being, but overseas economies are likely to grow moderately on the whole thereafter with the growth rates rising somewhat, partly due to the effects of economic stimulus measures, such as in China, and the progress in global adjustments in IT-related goods.

Let me take a look at developments by major region. Regarding the U.S. economy, while trade friction, particularly with China, seems to have been having a negative effect on momentum in manufacturing firms, nonmanufacturing firms have been showing resilience.