BoJ Governor Ueda says Japan’s experience highlights the importance of corporate adjustment; after the bubble collapsed, firms curtailed investment and spent many years repaying debt and repairing their balance sheets

Even after this adjustment had largely run its course, corporate saving remained high, while overseas investment became increasingly important. Expects rising domestic investment in Japan, but extent is very uncertain. If monetary policy normalisation is achieved, nominal variables will be less of an impediment to official resource allocation. Are in equilibrium with wages growing at level consistent with 2% inflation. 2% inflation hasn't quite become a social norm in Japan yet. Think they are in that equilibrium, but whether they can stay at that equilibrium for a very long time they still don’t know. BoJ may be required to use unconventional tools again, depending on the severity of shocks. Unconventional monetary policy tools have had some positive effects, but they have not been perfect substitutes for rate cuts from positive territory. Rising prices from energy-related products are beginning to hit consumer prices in Japan. If need to deploy unconventional tools again, we should think about ways to minimise negative effects. CPI are now around 3% and expected to rise further into early next year. Underlying inflation will likely stay around 2% but recognise there are some upside risks. Look at the actions of other central banks very, very carefully as they affect asset prices, including exchange rates and interest rates. In general, AI has been a positive demand shock for our economy; will have to look at supply-side factors as well. Japan may do well on AI replacing labour because there are significant labour shortages. Discussing communication by central bank, but don't have a formal commitment yet. Good idea to make what policy framework you are following, and has to be a good balance. With underlying inflation now at 2%, our goal is to keep it there