possible time. to this end, the bank has been pursuing powerful monetary easing, considering developments in economic activity and prices, as well as financial conditions, under the framework of quantitative and qualitative monetary easing ( qqe ) with yield curve control. the bank, under this framework, has been conducting yield curve control, in which it controls shortand long - term interest rates. specifically, at present, according to the guideline for market operations, the bank sets the short - term policy interest rate at minus 0. 1 percent and purchases japanese government bonds ( jgbs ) so that 10 - year jgb yields will remain at around 0 percent. by conducting this operation, short - and long - term interest rates have been stable at low levels, and i consider that the highly accommodative financial conditions, brought about by yield curve control, have stimulated firms ’ and households ’ spending activities. meanwhile, prices have continued to show relatively weak developments compared to the economic expansion and labor market tightening, with policy board members ’ forecasts presented in the april 2019 outlook report indicating that it likely would still take time to achieve the price stability target. as part of its efforts to do so, at the monetary policy meeting ( mpm ) held on april 24 and 25, the bank decided to clarify forward guidance for policy rates. specifically, the description of the existing guidance was partially revised, thereby making clear that the bank would “ maintain the current extremely low levels of short - and long - term interest rates for an extended period of time, at least through around spring 2020, taking into account uncertainties regarding economic activity and prices including developments in overseas economies and the effects of the scheduled consumption tax hike. ” by doing so, the bank clarified its unchanged policy stance to persistently continue with the current powerful monetary easing. what i would like to call attention to here is that the current extremely low levels of short - and long - term interest rates will be maintained “ for an extended period of time ” and that the inclusion of “ at least ” in the description regarding the time frame of the guidance indicates a fair possibility that the current low interest rates will be maintained beyond “ around spring 2020. ” in other words, “ for an extended period of time ” does not denote “ through around spring 2020 " ; rather, it implies an open - ended period even beyond that. the bank also decided at the april mpm to implement measures contributing to the continuation of powerful monetary easing. specifically, the bank

determines wages. as i mentioned earlier, labor market conditions are likely to continue tightening and the inflation rate will increase steadily toward 2 percent as the bank pursues aggressive monetary easing. in the course of japan's economy experiencing such a significant change, making proactive investment in human capital, including determining wages based on the 2 percent inflation benchmark, will benefit individual firms in terms of medium - to long - run management, not to mention that it is crucial for japan's economy as a whole. conclusion in concluding, let me touch on the economy of the chubu region. the economy centered on nagoya is the core of japan's manufacturing. challenges taken by many industries and firms in anticipation of future potential can become the driving force for raising japan's potential growth rate, which is at a low level currently. for example, in the automobile industry, which is the leading industry of the region, initiatives to introduce next - generation technology - - such as environmentally friendly features as well as automatic - and safe - driving systems - - are proceeding rapidly. in addition, in aircraft - related industries, formation of industrial clusters in the region is starting to make steady progress, and there are increasing numbers of cases where small and medium - sized parts manufacturers are working in an integrated manner in terms of receiving orders and producing parts. furthermore, such proactive production activities by manufacturers are inducing fixed investment by a wide range of firms, including nonmanufacturers. i would like to close my speech by expressing my sincere hope that these dynamic initiatives by the industrial sector, combined with financial institutions'and the local government's support, will lead to further growth and development of the chubu region. thank you. japan's economy and monetary policy speech at a meeting with business leaders in nagoya november 14, 2016 haruhiko kuroda governor of the bank of japan chart 1 developments in financial markets changes in jgb yield curve 1. 0 exchange rates and stock prices % 20, 000 depreciation of the yen september 20, 2016 ( the day before the decision to introduce qqe with yield curve control ) 0. 8 yen yen / u. s. dollar nikkei 225 stock average ( left scale ) yen / u. s. dollar ( right scale ) 19, 000 appreciation of the yen 0. 6 the latest data 18, 000 17, 000 16, 000 15, 000 0. 4 0. 2 0. 0 - 0. 2 - 0. 4 1 2 year