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, Nagoya, 15 November 2021.

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

It is my great pleasure to have the opportunity today to exchange views with a distinguished gathering of business leaders in the Tokai region. I would like to take this chance to express my sincerest gratitude for your cooperation with activities of the Bank of Japan's Nagoya Branch. We had to exchange views online since the outbreak of the novel coronavirus (COVID-19) last year, but today are able to hold an in-person meeting for the first time in a year and nine months, given the recent low level of confirmed cases. I am grateful to meet with you face-to-face at this gathering.

Although economic activity in Japan had been considerably constrained by the successive waves of COVID-19 since last year, positive signs toward normalization of economic activity are at last starting to be seen due to the widespread vaccinations and a substantial decline in the number of confirmed cases of COVID-19. At the same time, however, the global resumption of economic activity has triggered a new issue of supply-side constraints, which have caused shortages in raw materials and parts. Today, while elaborating on these points, I would like to explain the Bank's view on Japan's economic activity and prices based on the Outlook for Economic Activity and Prices (Outlook Report) released last month, as well as its thinking behind the recent conduct of monetary policy.