Masayoshi Amamiya: Monetary policy during and after Covid-19 era

Speech by Mr Masayoshi Amamiya, Deputy Governor of the Bank of Japan, at the Yomiuri Economic Forum in Tokyo, Akita (via webcast), 8 March 2021.

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

Introduction

It is my pleasure to have the opportunity to talk at the online seminar of the Yomiuri Economic Forum today.

This week marks the 10th anniversary of the Great East Japan Earthquake. Recovery from this disaster has made steady progress, including the restoration of social infrastructure such as transportation networks and of the living environment. I would like to express my heartfelt respect for all those involved in the reconstruction efforts. However, it is also true that there are still many issues that need to be resolved, such as the harsh reality that more than 40,000 people continue to live as evacuees. The Bank of Japan has been supporting the restoration and reconstruction efforts from the financial side, mainly through the Funds-Supplying Operation to Support Financial Institutions in Disaster Areas, which was introduced in April 2011, a month after the disaster. In March last year, the Bank revised the operation so that the necessary support can be continued; it decided to abolish the deadline of the operation and extend the duration of loans from one year to two years. The Bank will continue to contribute to the recovery of the affected areas.