Seiji Adachi: Economic activity, prices, and monetary policy in Japan

Speech by Mr Seiji Adachi, Member of the Policy Board of the Bank of Japan, at a meeting with local leaders, Toyama, 19 October 2022.

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

I. Economic Activity and Prices

A. Economic Activity

1. Developments regarding the novel coronavirus (COVID-19)

First, I would like to touch on developments regarding COVID-19.

During summer 2022, a seventh wave of COVID-19 swept across Japan, and the number of confirmed new cases surpassed the previous peak (Chart 1). However, as the resumption of economic activity progressed while public health was being protected, people refrained from going out less than in past waves, due in part to the absence of pandemic-related restrictions during the seventh wave.

Likewise, in overseas economies, the spread of COVID-19 cannot be said to have subsided, although it has been contained. Unless a highly virulent variant emerges, the economic impact of COVID-19 will likely become less significant even if another wave occurs.

That said, China maintains its stance of strictly adhering to the zero-COVID policy. Lockdowns in its cities will continue to pose the risk of an adverse impact on the global economy through international supply chains. This is a risk factor to the global economy, and thus warrants attention.