Before we exchange views, I will speak about recent economic and financial developments in Japan and abroad and also about policy responses in major countries.
We call on the Global Partnership for Financial Inclusion to report on the gaps and challenges in the global environment for SME finance, as well as potential policy responses, by our July meeting.
Meanwhile, currencies in some emerging economies with high vulnerability had been bought back, mainly against the background of the policy responses taken in Turkey and Argentina.
Meanwhile, the global economy deteriorated rapidly up to the spring of this year, but has been on a recovery path supported by policy responses on the fiscal and financial front as well as firms' efforts in production adjustment.
Looking at policy responses, on the monetary policy front, the Bank of Japan's(BOJ's) first policy rate reduction after the burst of a bubble was carried out in July 1991, one year after the peak of land prices Chart 3.
Central Banks' Policy Responses following the Global Financial Crisis Next, from this perspective of constant review and innovation, I would like to move on to various unconventional policy measures that major central banks took in the course of the recent severe financial crisis.
It has the potential to pull forward adjustment- but only if information is available and crucially ifthe policy responses of governments and the technological breakthroughs of the private sector are credible.
Discussions also took place on such issues as the attitude of management toward trade unions in Japan at Japanese companies operating in India and how to respond to policiesto stimulate the domestic demand necessary for the formation of the domestic market including the mitigation of inequalities.
In addition, since interest rate levels in a deflationary environment tend to be correspondingly low, interest rates are likely to face the zero lower bound when the economy experiences a negative shock. This will limit room for monetary policy responses using short-term interest rates.
Policy Responses of Central Banks and Governments to the Financial Crisis Against the backdrop of deterioration in economic conditions triggered by the financial crisis, central banks in major economies reduced policy interest rates significantly, and also expanded liquidity provisions to financial institutions by implementing various market operations in order to address the situation in which the impaired functioning of interbank markets lessened the effectiveness of monetary policy..
In my speech today, I will briefly refer to the roles that international banks including other financial institutions play in Japan. I will, then, look back on the developments in financial markets at home and abroad since the collapse of Lehman Brothers, followed by policy responsesby the Bank of Japan and lessons for the activities of international banks, especially the importance of liquidity management.
Urges States to take all necessary measures to address specifically, through policies and programmes, racism and racially motivated violence against women and girls and to increase cooperation, policy responses and effective implementation of national legislation and of their obligations under relevant international instruments, and other protective and preventive measures aimed at the elimination of all forms of racially motivated discrimination and violence against women and girls; 63.
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