I would like to welcome the New Year 2023 and wish you a very Happy New Year.

 Last year was a year of many changes in the global environment, including Russia's war of aggression against Ukraine, accelerating global inflation, and the search for behavioral changes in response to the With Corona. The year ahead is likely to be one of political and economic changes in the environment, including preparations for the Taiwan contingency, a review of the Bank of Japan's monetary easing policy due to the expiration of the BOJ governor's term, and the future of the Kishida administration.

 Although inflation in Japan is numerically lower than in Western countries, for a society accustomed to a deflationary economy, this inflation is a sudden and significant change. In such a situation, will this be the year that wages rise?

 As a result of suppressing labor costs during the 30-plus years of the Heisei era, companies accumulated large amounts of retained earnings. If those retained earnings can be taken drastic mesures. it would be a positive development for society as a whole, and I would welcome it. It is clear that wage increases are necessary to revitalize the stagnant Japanese economy.

 However, while moderate inflation accompanied by higher wages is favorable to economic recovery, in the real estate market, there is a possibility that price increases will slow down. Although there is a possibility of a certain amount of price adjustment due to the expected rise in financing costs, we expect the general trend of moderate appreciation to continue.

 As for inflation, I am personally optimistic. As long as the supply shortage, which is said to be the cause of inflation, is expected to gradually improve and the Bank of Japan does not change its policy on prices, I believe that people's inflation forecasts will also converge around 2%.

 This year will see a change in the Bank of Japan's governor. The future direction of monetary policy will have a significant impact on the real estate and housing industries. In particular, fluctuations in short-term interest rates require attention. The BOJ's raising the maximum interest rate on the 10-year Treasury note from 0.25% to 0.5% at the end of last year was a surprise, but there is a possibility that upward pressure on interest rates will continue to intensify. We look forward to appropriate policy decisions based on confirmation that real wages will continue to rise across society.