. ii. conduct of monetary policy next, let me explain the bank ’ s conduct of monetary policy. first, the bank has been pursuing powerful monetary easing through comprehensive monetary easing. under the comprehensive monetary easing framework, the bank encourages a decline in longer - term market interest rates and a reduction in various risk premiums through the asset purchase program. at the monetary policy meeting held last week, the bank, with a view to responding to the downside risks to the economy that i bis central bankers ’ speeches described earlier, decided to increase the total size of the program by about 10 trillion yen, to about 50 trillion yen. second, the bank has been making efforts to ensure financial market stability. third, in order to meet the biggest challenge for japan ’ s economy, which is the strengthening of the foundations for economic growth, the bank has been providing funds to private financial institutions that make lending and investment consistent with the policy goal. the funds are provided against collateral such as government securities, at a very low interest rate. with a view to making this framework more effective, in june 2011 the bank decided to establish a 500 billion yen new line of credit, through which it extends loans to financial institutions for their equity investments and the so - called asset - based lending ( abl ). the bank recognizes that japan ’ s economy faces the critical challenge of overcoming deflation and returning to a sustainable growth path with price stability. based on such strong recognition, the bank will continue to consistently make contributions as the central bank through the three - pronged approach that i have explained. bis central bankers ’ speeches

2023. source : imf. chart 5 real gdp level annualized quarterly growth rate s. a., ann., tril. yen s. a., ann., q / q % chg. - 5 - 10 - 15 domestic demand - 20 net exports - 25 real gdp - 30 cy 08 - 35 source : cabinet office. cy 20 chart 6 consumer prices y / y % chg. 22 / q1 q2 q3 q4 23 / q1 q2 23 / july august cpi for all items 0. 9 2. 4 2. 9 3. 9 3. 6 3. 3 3. 3 3. 2 less fresh food 0. 6 2. 1 2. 7 3. 7 3. 5 3. 3 3. 1 3. 1 less fresh food and energy - 0. 9 0. 9 1. 5 2. 8 3. 5 4. 2 4. 3 4. 3 energy 1. 4 1. 3 1. 3 1. 2 0. 3 - 0. 6 - 0. 8 - 0. 9 food products 0. 3 0. 5 0. 7 1. 2 1. 3 1. 5 1. 6 1. 7 general services - 1. 3 - 0. 1 0. 1 0. 4 0. 6 0. 7 0. 9 0. 9 ( reference : contribution to the cpi for all items less fresh food ) source : ministry of internal affairs and communications. chart 7 forecasts of the majority of the policy board members ( as of july 2023 ) note : figures in brackets indicate the medians of the policy board members'forecasts ( point estimates ). source : bank of japan. chart 8 cpi for goods and services goods ( less petroleum products ) 3. 5 general services ( less mobile phone charges ) contribution to y / y chg. in consumer prices, % points 3. 5 daily necessities, etc. apparel durable goods food products agricultural, aquatic, and livestock products cpi for goods ( less petroleum products ) 3. 0 2. 5 2. 0 contribution to y / y chg. in consumer prices, % points 3. 0 other 2. 5 eating out 2. 0 1. 5 1. 5 1. 0 1. 0 0. 5 0. 5 0. 0 0. 0 housing rent culture and recreation services related to domestic duties cpi for general services ( less mobile phone charges ) - 0. 5 - 0. 5 cy 19 cy