role of central banks is to indirectly support this credit extension. specifically, the role of central banks is to provide liquidity through money market operations and to take corporate debt as eligible collateral for its credit extension to private financial institutions. if central banks implement measures that take on the credit risks of individual firms, this will inevitably take away the businesses of private financial institutions. in addition, considering the increasing possibility of incurring losses, undertaking such credit risks must be examined from various aspects such as role sharing with the government in a broad sense, the financial health of the central bank, and confidence in the currency. in this connection, when the federal reserve introduced its outright purchases of cp, it attached various safety measures such as accepting only the most highly rated cp. as i mentioned earlier, financial conditions in japan are deteriorating sharply on the whole, and the risk that low interest rates may not exert their intended impact on economic activity has increased. based on this recognition, since this september the bank has introduced various measures to reduce such risk through providing liquidity to financial institutions and expanding the range of eligible corporate debt accepted as collateral. the bank has already been conducting purchases of cp under repurchase agreements, and these have been significantly increased in terms of frequency and size to support the better functioning of the cp market. in addition, with a view to facilitating corporate financing during the run - up to the calendar and fiscal year - ends, the range of corporate bonds and loans on deeds accepted as eligible collateral has been expanded and, as a temporary measure, bbb - rated corporate bonds and loans on deeds have been included in eligible collateral. furthermore, a decision was made to introduce a special operation to facilitate corporate financing, which will be implemented in early january. this special operation will enable financial institutions to obtain funds over the fiscal year - end with no explicit ceiling on the total funds available, although the maximum loans available to individual financial institutions will not exceed the value of the corporate debt pledged as collateral. also, the interest rate on these funds will be set lower than corresponding market interest rates. with these measures, the bank is aiming to support, in terms of funds availability and costs, the lending activities of financial institutions and transactions on the cp and corporate bond markets. in addition, given that the tightness in corporate financing may increase further during the run - up to the end of the fiscal year, the bank decided, last week, to introduce outright purchases of cp as a temporary measure, and to investigate how other

of monetary easing under the framework of yield curve control. thank you. economic activity, prices, and monetary policy in japan speech at a meeting with local leaders in ehime november 29, 2023 adachi seiji member of the policy board bank of japan chart 1 real gdp s. a., ann., tril. yen cy 08 source : cabinet office. chart 2 private consumption real private consumption consumption activity index ( cai, real ) s. a., cy 2015 = 100 consumption activity index ( cai, travel balance adjusted ) consumption of households ( excluding imputed rent ) disposable income, etc. ( sna ) cy 13 nondurable goods < 40. 5 > services < 50. 7 > durable goods < 8. 9 > cy 18 19 20 21 22 23 18 19 20 21 22 23 developments in business fixed investment plans y / y % chg. fy2023 average ( fy2004 - 2022 ) - 3 - 6 - 9 mar. fy2019 fy2020 fy2021 fy2022 june chart 3 notes : 1. in the left panel, figures for the cai are based on bank staff calculations. the cai figures ( travel balance adjusted ) exclude inbound tourism consumption and include outbound tourism consumption. 2. in the left panel, " disposable income, etc. " consists of disposable income and adjustment for the change in pension entitlements. real values are obtained using the deflator of consumption of households. 3. in the right panel, figures are based on bank staff calculations. figures in angle brackets show the weights in the cai. 4. in the right panel, nondurable goods include goods classified as semi - durable goods in the sna. sources : cabinet office ; bank of japan, etc. s. a., 2018 / q1 = 100 s. a., 2018 / q1 = 100 sept. dec. forecast actual notes : 1. figures are based on the tankan and are for all industries including financial institutions. 2. figures include software and r & d investments but exclude land purchasing expenses. r & d investment is not covered as a survey item before the march 2017 survey. 3. there is a discontinuity in the data for december 2021 due to a change in the survey sample. source : bank of japan. chart 4 business fixed investment indicators of business fixed investment s. a., ann.,