doon? the government will take over. but that will create more problems than it solves. therefore, all these things - counting minuses and pluses and adding them and making many problems disappear... just because, right now, there is no problem. and if these are not challenging enough, we heed the reminder of hyman minsky who argued that " it is in periods of stability that we sow seeds of instability. " what i just described earlier - good times, which we regulators cannot let go of so easily. in fact, when the good times are turning bad, we do our best to prolong it even longer. it can lull us into a wrong sense of complacency. this is the answer to the question i posed earlier : we work on systemic risks, report our analysis - thank god for our staff and for our colleagues - and engage the public because we avoid the expected shocks and better manage when the unexpected ones happen. this is a point of resilience. for instance, we in the central bank know that the policy rate affects [ market ] interest [ rates ]. but it does not affect the foreign borrowing costs of conglomerates from abroad. in a sense, the conglomerates live in a financial sector that is quite different from the financial sector that we all live in. the government is the same thing. this explains why the t - bill [ treasury - bill ] rate is lower than the policy rate. so, these are all the things we are asking. the extent to which these things that look like solutions to any problem that we do not like, eventually, unintentionally become the root of instability. so, our benchmark is not whether the risks do materialize but rather how prepared we are for them. 2 / 3 bis - central bankers'speeches it could be that none of them [ risks ] ever happen. but that does not mean we should do it. my analogy is always the typical fire extinguisher. it looks like a waste of money [ because ] it has never been used. but, clearly, it is a bad idea not to have them. in closing, let me invite everyone to download your copy of the 2022 financial stability report. tell us what you think, and we are more than happy to engage. in this way, we can manage the risks ahead and shape present and future outcomes - together. thank you very much at magandang hapon sa in

have been volatile against the backdrop of the further decline in crude oil prices and uncertainty such as over future developments in emerging and commodity - exporting economies, particularly the chinese economy. for these reasons, there is an increasing risk that an improvement in the business confidence of japanese firms and conversion of the deflationary mindset might be delayed and that the underlying trend in inflation might be negatively affected. in order to preempt the manifestation of this risk and to maintain momentum toward achieving the price stability target of 2 percent, the bank introduced “ quantitative and qualitative monetary easing ( qqe ) with a negative interest rate ” in january 2016. the bank will lower the short end of the yield curve by slashing its deposit rate on current accounts into negative territory and will exert further downward pressure on interest rates across the entire yield curve, in combination with continued large - scale purchases of japanese government bonds ( jgbs ). the jgb yield curve has declined after the introduction of “ qqe with a negative interest rate, ” bis central bankers ’ speeches and policy effects have been seen. going forward, these effects are likely to steadily spread to both the real economy and the price front. the bank will continue with “ qqe with a negative interest rate, ” 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 risks to economic activity and prices, and take additional easing measures in terms of three dimensions – quantity, quality, and interest rate – if it is judged necessary for achieving the price stability target. in global financial markets, risk aversion of investors has been spreading excessively around the globe recently. the bank will carefully monitor how the developments in global financial markets influence japan ’ s economy and prices. thank you. bis central bankers ’ speeches