be perceived by some market participants as a " deadline, " thereby creating unnecessary speculation about the bank's policy conduct. as i have explained, monetary policy should be conducted by taking into consideration various uncertainties, and therefore it is undesirable to attract excessive attention merely to specific timing or a numerical value. based on these points, i have judged that deleting the description of the projection in the outlook report is unavoidable. i believe that providing a detailed and articulate explanation on the mechanism of price rises and on the assessment of risks will lead to more appropriate communication with market participants. today, i have expressed my views on changes in the supply capacity of japan's economy and how monetary policy should be conducted in response to these changes. the bank will persistently pursue monetary easing measures and provide its utmost support for the sound development of the national economy by ensuring price stability. under such circumstances, i hope to see continued proactive initiatives and efforts by firms and the government.

expand its economy's supply capacity as the effects of hysteresis dissipate. indeed, japan's labor productivity recently has been improving at a relatively fast pace to catch up with other economies. the expansion of the economy's supply capacity, in the short term, has been working in the direction of easing the upward pressure on wages and prices associated with an increase in demand. however, there is no need to be unduly pessimistic about the current situation. as i mentioned earlier, the momentum toward achieving the price stability target is being maintained. in addition, we should not focus solely on raising prices. it is desirable that prices rise moderately as the quality of people's lives improves. recently, an increasing number of people are participating in the labor market in ways that meet their wishes, and firms are promoting a shift to more efficient and adequate work practices. as a result, the economy's long - term growth potential is also beginning to be raised. i believe that these changes will indeed enrich people's lives. b. framework of monetary policy based on what i have presented, i would now like to reconsider the framework of monetary policy. my view is that monetary policy should aim at maintaining somewhat tight supply - demand conditions, which are currently in place, for as long as possible. as i have explained, i believe that japan's economy at present, except for sluggish inflation, is in a very favorable condition. driven by an increase in demand, various benefits stemming from the expansion of the supply capacity have been brought about. it is possible that these benefits are relatively large as the adverse effects of hysteresis that occurred in the past have remained strong in japan. of course, this does not mean that a rise in prices is unwelcome. the bank should achieve the price stability target at the earliest possible time. note, however, that we should not misunderstand the meaning of " at the earliest possible time. " this does not mean that the bank should try to achieve the target at whatever cost. its mission, as stipulated in the bank of japan act, is " achieving price stability, thereby contributing to the sound development of the national economy. " if sound development of the economy is hindered as a consequence of a rise in prices, this will confuse the essential with the unessential. for example, because of the relatively slow pace of change in the supply capacity, if the pace of increase