of utmost importance to continue to patiently maintain accommodative financial conditions. thank you. economic activity, prices, and monetary policy in japan speech at a meeting with local leaders in nagasaki october 3, 2024 noguchi asahi member of the policy board bank of japan chart 1 overseas economies unemployment rate cpi y / y % chg. united states euro area united kingdom china % united states euro area united kingdom china - 2 cy 18 note : figures for the cpi are for all items. sources : bls ; eurostat ; nbsc ; ons. cy 18 chart 2 imf forecasts for global growth major economies'growth rates global growth rate y / y % chg. y / y % chg. cy 2023 imf forecasts world 3. 3 3. 2 3. 3 1. 7 1. 7 1. 8 united states 2. 5 2. 6 1. 9 euro area 0. 5 0. 9 1. 5 united kingdom 0. 1 0. 7 1. 5 japan 1. 9 0. 7 1. 0 4. 4 4. 3 4. 3 china 5. 2 5. 0 4. 5 india 8. 2 7. 0 6. 5 asean - 5 4. 1 4. 5 4. 6 advanced economies cy 2024 cy 2025 [ forecast ] [ forecast ] cy1990 - 2019 average : + 3. 6 % emerging market and developing economies - 1 - 2 - 3 - 4 cy 00 note : figures are as of july 2024. source : imf. chart 3 real gdp annualized quarterly growth rate quarter - on - quarter changes s. a., q / q % chg. s. a., ann., q / q % chg. apr. - jun. jul. - sep. oct. - dec. jan. - mar. apr. - jun. gdp 0. 7 - 1. 1 0. 1 - 0. 6 0. 7 domestic demand - 1. 0 - 0. 8 - 0. 1 - 0. 1 0. 8 private demand - 1. 0 - 1. 1 0. 0 - 0. 2 0. 7 - 0. 8 - 0. 3 - 0. 3 - 0. 6 0. 9 1. 4 - 1. 2 - 1. 1 - 2. 6 1. 7 - 2. 0 - 0. 2 2. 1 - 0. 5 0. 8 - 0. 9 0. 1

bank of canada is formally committed to keeping it that way. at the same time, i most certainly agree that we should always be looking at our economic policies from the perspective of their likely impact on the growth of productivity. after all, productivity is what matters for a sound economic performance and for rising standards of living over time. currently, the low canadian dollar provides an opportunity for canadian businesses to expand their presence in foreign markets. but they must also continue to work hard to increase productivity and to ensure that they stay competitive as our currency regains strength. what about monetary policy – what is it doing to further productivity? the focus of canadian monetary policy is on domestic price stability. this means keeping inflation low and stable over time – currently within a target range of 1 % to 3 %. the bank aims to avoid both inflation and deflation. and if we are successful, we will have provided canadians with greater predictability, fewer cyclical fluctuations, and sustained low interest rates. i believe that a monetary policy that seeks to provide this kind of environment is the most conducive to productivity growth over time. concluding remarks to conclude, let me just say that canada cannot escape the uncertainties that have clouded the global economic outlook. the pace of economic expansion in canada is not as robust as it was a year ago. but our economy should continue to grow over the next year, supported by accommodative monetary conditions and sustained u. s. demand. – 6 – although it may be difficult to see while we are still battling the waves of global instability, the fact is that we are coping better this time around because our economy is in sounder shape. and this gives me reason to remain rather positive about our economic future. * * *