This is because it is more likely to take time for the economy to recover, mainly for the nonmanufacturing industry, due to the recent resurgence of COVID-19. In addition, a decline in actual prices is prone to have stronger effects on people's perception of prices in Japan than in the United States and Europe, given that Japan suffered from prolonged deflation.
Taking these factors into account, price developments continue to warrant attention. 3  II. Conduct of Monetary Policy Let me now turn to the Bank's policy conduct. The Bank has conducted powerful monetary easing since March 2020 in response to COVID19 through the following three measures (Chart 8).