may 25, 2022 bank of japan opening remarks at the 2022 boj - imes conference hosted by the institute for monetary and economic studies, bank of japan kuroda haruhiko governor of the bank of japan i. introduction it is my great pleasure to welcome you all to the 2022 boj - imes conference. on behalf of the conference organizers, i would like to thank you all for your participation. this is the 27th conference since its start in 1983. due to the continuing effects of covid19, the conference is being held online, as last year. the previous conference was very fruitful with lively and wide - ranging discussions on the theme of " adapting to the new normal : perspectives and policy challenges after the covid - 19 pandemic. " since then, however, the environment surrounding central banks has changed dramatically. given these developments, the themes for discussion appear to have expanded rapidly. that is why i think this is the ideal opportunity for central banks, international institutions, and academia to gather and exchange opinions. against this background, the theme of this year's conference is " new dimensions and frontiers in central banking. " now i would like to provide an overview of the theme, focusing on the new dimensions faced by central banks and the frontiers they are developing. ii. new dimensions in central banking first of all, i would like to point out two challenges currently facing central banks. a surge in inflation the first challenge is a global surge in inflation. for most central bankers and researchers, this is not something they could have imagined at the emergence of covid - 19. the unique feature of inflation this time is that both supply and demand inflationary factors have occurred at the same time. on the supply side, constraints on production capacity have given rise to inflationary pressure. these constraints include disruptions to the supply of raw materials, a shortage of semiconductors, and labor shortages. on the demand side, as economic activity has recovered globally since last year, solid demand from households has materialized. a shift in demand from services to goods has occurred amid the continued pandemic. these two factors have brought about upward inflationary pressure, especially on the price of goods including the price of commodities. that said, when it comes to these supply and demand effects, there are both similarities and differences between countries. for example, in japan, household pent - up demand has been limited and the recovery of aggregate demand has been slower than in europe and the united

of climate change and its impact on the economy, is useful in measuring relevant risks. taking account of the work of the ngfs and other authorities, the bank, in collaboration with the financial services agency, is working on pilot exercises in scenario analysis targeting large financial institutions by using common scenarios. the bank will encourage financial institutions to enhance their disclosures, both qualitatively and quantitatively, based on the tcfd framework, which has been incorporated in the revised “ japan ’ s corporate governance code. " research research is extremely important in examining monetary policy measures and responses regarding the financial system. the bank has hosted the international research workshop on climate - related financial risks and published research papers. the bank will deepen its analysis of how climate change will affect the macroeconomy, including economic activity and prices, financial markets, and the financial system, and make efforts in collecting climate - related data and refining analytical tools in order to better conduct surveillance and identify risks. it will also examine the functioning of financial markets and infrastructure and consider ways to address issues relevant to payment systems and market infrastructures. the findings will be shared and discussed with stakeholders at home and abroad. international finance the bank ’ s strategy on climate change was formulated partly in response to international discussions about climate change. the bank will contribute to the development of measures against climate change by learning from other jurisdictions ’ experience at international forums, such as the g7, the g20, and emeap, sharing the experience gained through its measures, and taking part in multilateral discussions. on the financial system front, in close collaboration with the financial services agency, the bank will contribute to building an international framework for addressing climate - related financial risks at such forums as the basel committee on banking supervision, the fsb, and the ngfs. regarding data gaps, the bank will work with financial institutions and the relevant authorities to contribute to international initiatives to improve the availability of data necessary for assessing climate - related financial risks. in cooperation with other central banks, the bank will strengthen its efforts to promote investment in climate - related financial products, such as green bonds, with the aim of fostering the development of financial markets. the bank has been investing in the asian bond fund launched by emeap to support the development of local currency - denominated bond markets in asia. to help promote the local currency - denominated green bond market, it will consult with other emeap member central banks and stakeholders to expand the scope of