Haruhiko Kuroda: Japan's economy and monetary policy

Speech by Mr Haruhiko Kuroda, Governor of the Bank of Japan, at a meeting with business leaders, Osaka, 24 September 2019.

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 Kansai region. I would like to take this opportunity to express my sincerest gratitude for your cooperation with the various activities of the Bank of Japan's branches in Osaka, Kobe, and Kyoto.

At the Monetary Policy Meeting (MPM) held last week, the Bank, regarding the price developments in Japan, judged that it was becoming necessary to pay closer attention to the possibility that the momentum toward achieving the price stability target of 2 percent will be lost. The Bank also made clear in its policy statement that, while taking this situation into account, it will reexamine economic and price developments at the next MPM, when it compiles the Outlook for Economic Activity and Prices (Outlook Report). Today, I would like to talk about the Bank's view regarding the economic and price developments on which its judgment was based and then explain the basic thinking behind the conduct of monetary policy.