in the underlying trend of inflation consistent with our target path is important for the course of monetary policy. we assess that the underlying trend of inflation will weaken following the rise in january. however, there are also some risks to the underlying trend. in particular, we will be closely monitoring the impact of wage adjustments on demand. monetary policy esteemed guests, in this part of speech, i would like to talk about the monetary policy strategy we are implementing. as you know, we increased our policy rate from 8. 5 percent to 45 percent in line with the monetary tightening process. with a holistic approach, we introduced regulations to support the monetary tightening process in a gradual manner. accordingly, we are sterilizing the excess liquidity in the banking system through quantitative tightening. moreover, we implemented selective credit tightening to foster balancing in domestic demand. 6 / 12 bis - central bankers'speeches additionally, to restore the efficiency of market mechanism, we simplified the macroprudential policy framework and supported the increase in the share of tl deposits. we simplified the macroprudential framework by abolishing securities maintenance regulations to encourage transition to fx - protected deposits and restrict lending. thus, we fostered the functionality of the bond and credit markets, the normalization of the yield curve, and the strengthening of monetary transmission. meanwhile, we continue with regulations to reduce fx - protected deposits and to increase the share of turkish lira deposits. in addition to these, to strengthen the monetary transmission mechanism, more than 1 trillion turkish liras have been sterilized through reserve requirement regulations since july 2023. moreover, turkish lira deposit buying auctions were launched to sterilize the cyclical and temporary excess liquidity. accordingly, the turkish lira deposit buying auction balance, which was 290 billion turkish liras at the end of 2023, rose to 603 billion turkish liras in january, and fell to 100 billion turkish liras as of 5 february. effects of the turkish lira liquidity on the secondary market rates will be closely monitored in the upcoming period, and sterilization tools will be further utilized to this end. sterilization of excess turkish lira liquidity through reserve requirements and the subsequent rise in the funding cost resulting from reserve requirements put downward pressure on turkish lira deposit rates. in this context, it was decided to remunerate turkish lira reserve requirements in line with the targets of conversion of fx - protected deposits to turkish lira deposits. this decision aims

been accommodative. in the cp and corporate bond markets, the issuing environment has been favorable. the lending attitudes of private banks have continued to be accommodative. under these circumstances, the amount outstanding of lending by private banks has been increasing moderately, and the amount outstanding of cp and corporate bonds issued has been above the previous year's level. ii. conduct of monetary policy regarding the conduct of monetary policy, the bank's basic thinking has been that ( 1 ) given the extremely accommodative financial conditions, the level of interest rates is to be raised if japan's economy is to follow a path of sustainable growth under price stability, and ( 2 ) the pace of increase in interest rates should be determined in accordance with improvements in the economic and price situation without any predetermined view. weak inflationary pressures have given the bank latitude in conducting monetary policy. the actual interest rate adjustments have therefore been slow based on a thorough assessment of the future path of the economy and prices and its likelihood, as well as both upside and downside risks. the bank's basic thinking in this regard will remain the same in the conduct of future monetary policy. in other words, while confirming that japan's economy remains likely to follow a path of sustainable growth under price stability and assessing relevant upside and downside risk factors, the bank will adjust the level of interest rates gradually in accordance with improvements in the economic and price situation. the bank is determined to conduct monetary policy appropriately based on careful assessment of economic activity and prices as well as the situation of financial markets at home and abroad, thereby contributing to sustainable economic growth under price stability. iii. disposal of stocks purchased from financial institutions the bank implemented a stock purchasing program, which was not a monetary policy measure, between november 2002 and september 2004. through this program, the bank purchased stocks held by financial institutions in order to encourage them to reduce their market risks associated with stockholdings. the total book value of the stocks held by the bank under this program was approximately 1. 6 trillion yen as of the end of september 2007, and the bank has started to dispose of these stocks in the market from october 2007 as scheduled. in disposing of them, the bank will strive to avoid any financial losses and also to minimize the impact on the stock market by carefully spreading its sales out over a period. conclusion let me close my remarks by noting that in the latest issue of the outlook for economic activity and