Masazumi Wakatabe: Japan's economy and monetary policy

Speech (via webcast) by Mr Masazumi Wakatabe, Deputy Governor of the Bank of Japan, at an Economy and Monetary Policy Meeting with Business Leaders, Saga, 2 September 2020.

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

Introduction

Good morning. First of all, I would like to offer my heartfelt sympathies to those who are suffering from the heavy rain that occurred in August 2019 and July this year. It would have been better if I could visit Saga Prefecture and talk in person to deepen my understanding of the regional economy, but it became difficult to do so due to the spread of the novel coronavirus (COVID-19) and this meeting had to be held online. Anyway, it is my great pleasure to meet you today, and I would like to take this chance to express my sincere gratitude for your cooperation with the activities of the Bank of Japan's Saga Office and Fukuoka Branch.

The COVID-19 pandemic has had a severe impact on the global economy. Not only people's lives, but also employment, income, and business activities have been significantly affected. In addition, from a long-term perspective, human beings have undergone considerable development through globalization, urbanization, and a shift toward a service economy; in other words, by people gathering and closely interacting with each other. COVID-19 poses challenges to the driving force of such development.