that can be matched to generate beneficial alliances that can result in greater financial inclusion. the program designates lunch ( of course you can stay on ) for everyone to mingle and network, talk about common interests, and catalyze concepts for potential collaboration. this event is the first of many, and merely whets the appetite for greater engagement and collaboration among us. we plan to make this a regular activity to ensure continuity and synergy of public - private sector actions in financial inclusion. conclusion the success of nsfi is dependent not only on the effectiveness of policy and program implementation by nsfi agencies. success is also largely anchored on the private sector ’ s response to nsfi initiatives. with your support and commitment as nsfi co - implementers, we can be assured of future successes. the bsp remains committed to lead and support the nsfi process. on behalf of all nsfi agencies, we look forward to future productive partnerships. thank you and good morning bis central bankers ’ speeches

pursuing quantitative monetary easing, the bank decided to increase the monetary base – which is the total amount of currency it directly supplies to the economy ( the sum of banknotes in circulation, coins in circulation, and current account deposits held by financial institutions at the bank ) – at an annual pace of about 60 – 70 trillion yen, thus doubling it in two years. second, to achieve this, the bank has been purchasing japanese government bonds ( jgbs ) so that their amount outstanding increases at an annual pace of about 50 trillion yen. in doing so, the bank has aimed at working on interest rates across the yield curve – including longerterm ones – extending the average remaining maturity of its jgb purchases to about seven years. and third, the bank has been purchasing exchange - traded funds ( etfs ) and japan real estate investment trusts ( j - reits ) so that their amounts outstanding increase at an annual pace of about 1 trillion yen and about 30 billion yen, respectively. the bank will continue with qqe – consisting of these measures – aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner. it will examine both upside and downside risks to economic activity and prices, and make adjustments as appropriate. in order to achieve the price stability target, it is important to create a virtuous cycle in which prices rise moderately along with a balanced and sustainable improvement in economic activity that is accompanied by increases in corporate profits, employment, and wages. 2. effects of qqe now i will talk about developments since the introduction of qqe. the monetary base has been increasing at an annual pace of about 60 – 70 trillion yen – in line with the bank ’ s guideline for money market operations – owing to progress in the bank ’ s large - scale jgb purchases, and reached its initial projection of 200 trillion yen at end - 2013. the bank intends to increase its monetary base to 270 trillion yen – corresponding to as much as approximately 60 percent of japan ’ s nominal gdp – toward end - 2014. despite some instability observed in the jgb market soon after the introduction of qqe last april, the market gradually regained stability as the bank implemented detailed money market operation measures while maintaining a close dialogue with market participants. qqe has thus been exerting its intended effects, with favorable developments spreading to economic activity and financial markets. bis central bankers ’ speeches the bank conducts qqe keeping