weak due to various factors such as weak corporate demand, which also is observed in machinery investment, the effects of stricter environmental regulations, and the tightening of financial conditions in some emerging economies. there used to be a prevailing view that the global economy would head toward a pick - up in 2019, but the pick - up turned out to be delayed, and many institutions, including the international monetary fund ( imf ) and the bank of japan, had to revise downward their projections for global economic growth. the delay is mainly attributable to the intensified and prolonged u. s. - china trade friction and a continuing decline in the growth rate of the chinese economy. so, how long will the global economic growth pace continue to be in this deceleration phase? in other words, when will the global economy pick up? the bank projects that, although it is subject to considerable uncertainties, the growth rate will rise moderately through mid - 2020. according to the latest world economic outlook ( weo ) released by the imf, the global growth rate for 2019 is projected to decline to 3. 0 percent and thereafter recover to 3. 4 percent for 2020, which is around the past average ( chart 1 ). one of the mechanisms through which the global economy will pick up is the materialization of the effects of each country's macroeconomic policy. since the beginning of this year, many emerging and commodity - exporting economies have reduced their policy rates. as for advanced economies, the federal reserve cut its policy rate at three consecutive meetings held from july through october, with a view to preventing an actual slowdown in economic activity and prices due to risks concerning weak global growth, as well as trade developments. the european central bank ( ecb ) also conducted monetary easing in september. these accommodative monetary policy measures will likely support a pick - up in the global economy by stabilizing economic and price developments in each country. at the federal open market committee ( fomc ) held this morning, the federal reserve decided not to change its policy. as background to this decision, the federal reserve has pointed to the projection that the " insurance " rate cuts in the past few months will likely underpin the u. s. economy. another driving force of a pick - up in the global economy is a recovery in the global cycle for it - related goods, which triggered the current global economic slowdown ( chart 3 ). the global demand for semiconductors is bottom

so far, i have talked about the bank's basic stance of monetary policy conduct. in such conduct, the bank considers it important to take into account both the effects and side effects of monetary policy, including those on financial markets and the functioning of financial intermediation. on this point, it recognizes that prolonged downward pressure on financial institutions'profits, with the low interest rate environment and severe competition among financial institutions continuing, could create risks of a gradual pullback in financial intermediation and of destabilizing the financial system. although these risks are judged as not significant at this point, mainly because financial institutions have sufficient capital bases, the bank will continue to examine these risks as well as those considered most relevant to the conduct of monetary policy and pursue such conduct in an appropriate manner, taking account of developments in economic activity and prices as well as financial conditions. conclusion lastly, i would like to say a few words about okayama prefecture's economy. okayama prefecture's economy has been on a moderate expanding trend on the back of firm domestic demand. while the u. s. - china trade friction as well as relatively weak developments in the chinese economy are affecting exports and production, business fixed investment has remained at a high level. private consumption has been on a pick - up trend, although fluctuations in demand resulting from the consumption tax hike have been observed. despite the severe damage caused by the heavy rain last year, okayama prefecture's economy has maintained a virtuous expansionary cycle supported by the hard work of residents, firms, and the local government. blessed by a favorable climate that earned it the name " the land of sunshine, " okayama prefecture has developed the commerce and logistics rooted in its history as a transportation hub. its manufacturing industries, as exemplified by the mizushima coastal industrial zone, have been a driving force in japanese manufacturing. moreover, the prefecture is rich in culture, as shown by its many ancient castles, bizen ware, korakuen, and the kurashiki bikan historical quarter, as well as in natural blessings such as its hot springs, fruits, and the delights of setouchi, which appeal to visitors from japan and abroad. the promotion of tourism based on these attractions is making progress, and with the " okayama art summit " and the " setouchi triennale " having been held this year, many people from japan and other countries have been visiting okayama prefecture. on the other hand,