From this perspective, the Bank, at the Monetary Policy Meeting held in July 2021, decided on the preliminary outline of a new fund-provisioning measure to support financial institutions' efforts on climate change (Chart 8). In this measure, the Bank takes the approach of providing funds to financial institutions for investment or loans they make to address climate change based on their own decisions.
In little more than four months, the Heisei era will draw to a close and make way for a new era. Taking this juncture as an opportunity to look at Japan's economy from a broader perspective, the impact of the prolonged deflation of the past persists in the form of cautious wage setting and a reluctance to accept price rises.