past has allowed us to better understand why it is taking considerable time to achieve price stability, as well as the positive effects and side effects of unconventional monetary policy. the results of the review are not supposed to affect the bank's conduct of monetary policy in the near term, but from a somewhat long - term perspective, they are expected to provide valuable inputs that will allow us to gain deeper insight into monetary policy. thank you very much for your attention. japan's economy and monetary policy speech at a meeting with business leaders in osaka september 24, 2024 ueda kazuo governor of the bank of japan introduction i. economic activity and prices ii. the bank's conduct of monetary policy concluding remarks chart 1 i. economic activity and prices real gdp s. a., ann., tril. yen fy 13 source : cabinet office. chart 2 i. economic activity and prices corporate sector business fixed investment current profits manufacturing non - manufacturing s. a., tril. yen large firms 10 s. a., tril. yen y / y % chg. planned investment in the june 2024 survey : + 10. 8 % small and medium - sized firms - 5 - 10 - 15 large firms small and medium - sized firms cy10 24 cy10 - 20 fy 08 10 12 14 16 18 20 22 24 notes : 1. figures for current profits are based on the financial statements statistics of corporations by industry, quarterly and exclude " finance and insurance " and pure holding companies. 2. in the right - hand chart, figures are based on the tankan, including software and r & d investments and excluding land purchasing expenses. r & d investment is not included before the march 2017 survey. figures are for all industries including financial institutions. sources : ministry of finance ; bank of japan. chart 3 i. economic activity and prices household sector real private consumption s. a., cy 2019 = 100 total real private consumption of which, services ( travel, dining - out, etc. ) of which, nondurable goods ( food products, clothes, daily necessities, etc. ) cy 19 note : figures for total real private consumption are the real consumption activity index ( travel balance adjusted ) based on staff calculations, which exclude inbound tourism consumption and include outbound tourism consumption. source : bank of japan. chart 4 i. economic activity and prices nominal wages y / y % chg. scheduled cash earnings of full - time employees - 1 cy

disposal. only then, and as a last resort, should it have access to a temporary and fiscally neutral public backstop, the contributions to which should be paid by the private sector either via ex post levies or, more normally, as a result of the reprivatisation of the intermediary institutions ( e. g. bridge banks ) or other good assets resulting from the resolution process. progress in these elements of a future banking union is very important in the present economic environment of low growth. part of the european problem has to do with the situation of the banking sector : pressed for capital, intending to deleverage and risk averse in bis central bankers ’ speeches managing credit risk. consequently, credit is being contained although it is virtually impossible to disentangle the contribution of supply restrictions versus weak demand in explaining the average decline of credit to the economy. in the markets there is the suspicion that banks ’ balance - sheets need more repair with full recognition of potential losses and that is also affecting the lending behaviour of banks. no one has provided clear evidence that this is true and that is why the balance - sheet assessment that the ssm has to conduct before actually starting supervision is so important to re - establish market confidence in our banks to reduce their funding costs. therefore, the establishment of the ssm, the possible use of direct european recapitalisation and the creation of a single resolution mechanism will decisively contribute to the desirable separation of banks and sovereigns. to regain market confidence, restoring full banking sector health must be a priority in order to create improved growth prospects. this is why the banking union project is crucial at this particular moment. economic growth in europe is now essential to complete the adjustment and the rebalancing that have been going on. therefore, it is of paramount importance that the momentum is maintained towards implementing structural reforms at national level and towards building a stronger economic and monetary union through european institutional reforms. i trust that the european parliament will continue to play an active and positive role in this process. i thank you for your attention and stand at your disposal for questions. bis central bankers ’ speeches