I would like to start by expressing my deep gratitude to you for your cooperation with our branches in Osaka, Kobe, and Kyoto. What I recognized most strongly when I assumed the role of the Governor of the Bank of Japan in March this year was that we must bring Japan’s economy out of deflation that has lasted for almost 15 years.
Amid protracted deflation, Japan’s economy has been deprived of vitality. The greatest challenge facing Japan’s economy in the immediate future is a prompt overcoming of deflation, and the role the Bank has to play to that end is critical. Based on such recognition, a new policy of quantitative and qualitative monetary easing (QQE) was introduced in April.