Today, before exchanging views with you, I will briefly explain the recent economic developments at home and abroad, and then touch on some notable points regarding monetary policy. Following my speech, I would like to have your views on the actual situation of the local economy and your candid opinions about the Bank of Japan. I.
[36] Given the lower capital intensity of services relative to construction or goods production, the service sector may be less sensitive to monetary policy, implying a weaker interest rate channel of transmission. This hypothesis is borne out by recent empirical evidence subdividing regional GVA into its capital- and labour-intensive components (Chart 30, right panel).