Kazuo Ueda: Opening remarks - BOJ-IMES conference 2024

Opening remarks by Mr Kazuo Ueda, Governor of the Bank of Japan, at the 2024 BOJ-IMES Conference "Price Dynamics and Monetary Policy Challenges: Lessons Learned and Going Forward", hosted by the Institute for Monetary and Economic Studies, Tokyo, 27 May 2024.

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

I. Introduction

It is our great pleasure to welcome distinguished speakers and guests to our 29th BOJ-IMES Conference. We would like to thank you all for your participation. I would also like to thank my old friend, John Taylor, who was the very first Mayekawa Lecturer in 2008, for coming back to our conference to deliver his second Mayekawa Lecture later.

While we hold our research conference almost every year, this year's conference is unique in that it is held as part of our "Broad Perspective Review" of monetary policy. The review aims to further deepen our understanding of various unconventional monetary policy measures over the past 25 years and to gain insights that will be useful for future policy conduct. This conference will cover two main themes: "Price dynamics" and "Effects of conventional and unconventional monetary policy instruments." We very much look forward to lively discussions with you today and tomorrow to gain further insight into these themes. To set the stage, let me start my remarks with the recent changes in our monetary policy framework, followed by my reflection on the past 25 years condensed into 20 minutes.

II. Japan's Zero-Inflation Trap and the BOJ's Large-Scale Monetary Easing

Changes in the Monetary Policy Framework

The Bank of Japan (BOJ) decided on the termination of most of its non-traditional monetary easing measures at its March 19 meeting, in response to the improving inflation outlook. Discontinued measures included: the yield curve control (YCC) involving a negative shortterm policy rate and control of the 10-year JGB yield, and purchases of risky assets such as equity-linked ETFs and J-REITs. Additionally, two types of forward guidance were ended: one stating that the BOJ would continue with Quantitative and Qualitative Monetary Easing (QQE) with YCC as long as it was necessary for maintaining the price stability target in a stable manner, and the other indicating that the BOJ would continue expanding the monetary base until inflation exceeded 2% and stayed above the target in a stable manner. For further insights into this decision, please refer to my speech at the PIIE (Ueda, 2024).