Masazumi Wakatabe: Japan's economy and monetary policy

Speech by Mr Masazumi Wakatabe, Deputy Governor of the Bank of Japan, at a meeting with local leaders in Kanagawa, virtual, 3 February 2021.

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

Introduction

Good morning. It is my pleasure to have the opportunity today to exchange views with leaders in administrative, financial, and economic areas in Kanagawa Prefecture, which is taking place online due to the continuing impact of the novel coronavirus (COVID-19). I would like to take this chance to express my sincere gratitude for your cooperation with the activities of the Bank of Japan's Yokohama Branch. Also, it is an honor to join this meeting, as I was born in Yokohama and raised in Fujisawa.

At the January Monetary Policy Meeting (MPM), the Bank released the Outlook for Economic Activity and Prices (Outlook Report) in which it presented the outlook for Japan's economic activity and prices through fiscal 2022. Today, I will first talk about the Bank's view on economic and financial developments at home and abroad by providing you an overview of the Outlook Report, and then explain the future conduct of monetary policy while touching on the thinking behind the upcoming assessment for further effective and sustainable monetary easing. I also would like to describe economic developments in Kanagawa Prefecture at the end of my speech.