Minutes of the
Monetary Policy Meeting
on June 14 and 15, 2007
IV. Summary of Discussions on Monetary Policy for the Immediate Future
On the guideline for money market operations for the intermeeting period ahead, members agreed that, based on their assessment of the economic and financial situation, it was appropriate to maintain the current guideline for money market operations that the Bank would encourage the uncollateralized overnight call rate to remain at around 0.5 percent.
They also concurred that their basic thinking remained unchanged on the monetary policy stance for the immediate future: while confirming that Japan's economy remained likely to follow a path of sustainable growth under price stability in light of the "understanding of medium- to long-term price stability" and assessing relevant risk factors, the Bank would adjust the level of interest rates gradually in accordance with improvements in the economic and price situation.
Members discussed the Bank's communication of its thinking concerning the conduct of monetary policy. Some members said that market participants and the media remained keenly interested in how the Bank would conduct monetary policy in view of the fact that consumer prices had recently remained sluggish, and they seemed to be speculating about the specific timing of a policy change.
In relation to this, many members expressed the view that the Bank should promote deeper understanding among market participants and the public of the framework of its forward-looking monetary policy.
Many members stressed that, in communicating with market participants, the Bank should not provide information that could be taken as implying a predetermined time schedule for the conduct of monetary policy as this was inappropriate in view of the need to maintain two-way communication. After the above discussion, members agreed that it was important to explain at every opportunity the Bank's basic thinking on the conduct of monetary policy, and continue to clearly explain its assessment of both current and future developments in economic activity and prices.
Monetary Policy Meeting
on June 14 and 15, 2007
IV. Summary of Discussions on Monetary Policy for the Immediate Future
On the guideline for money market operations for the intermeeting period ahead, members agreed that, based on their assessment of the economic and financial situation, it was appropriate to maintain the current guideline for money market operations that the Bank would encourage the uncollateralized overnight call rate to remain at around 0.5 percent.
They also concurred that their basic thinking remained unchanged on the monetary policy stance for the immediate future: while confirming that Japan's economy remained likely to follow a path of sustainable growth under price stability in light of the "understanding of medium- to long-term price stability" and assessing relevant risk factors, the Bank would adjust the level of interest rates gradually in accordance with improvements in the economic and price situation.
Members discussed the Bank's communication of its thinking concerning the conduct of monetary policy. Some members said that market participants and the media remained keenly interested in how the Bank would conduct monetary policy in view of the fact that consumer prices had recently remained sluggish, and they seemed to be speculating about the specific timing of a policy change.
In relation to this, many members expressed the view that the Bank should promote deeper understanding among market participants and the public of the framework of its forward-looking monetary policy.
Many members stressed that, in communicating with market participants, the Bank should not provide information that could be taken as implying a predetermined time schedule for the conduct of monetary policy as this was inappropriate in view of the need to maintain two-way communication. After the above discussion, members agreed that it was important to explain at every opportunity the Bank's basic thinking on the conduct of monetary policy, and continue to clearly explain its assessment of both current and future developments in economic activity and prices.
