Minutes of the
Monetary Policy Meeting
on July 11 and 12, 2007
August 28, 2007
Bank of Japan
(전략)
III. Summary of Discussions on Monetary Policy for the Immediate Future
Given the economic and financial situation, members 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.
On the guideline for money market operations for the intermeeting period ahead, one member said that it would be appropriate to raise the uncollateralized overnight call rate target from around 0.5 percent to around 0.75 percent as the member considered that the
raise was justified by economic conditions.
Against this view, most members said that it would be 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 were of the view that, lthough developments in the economy and prices had been broadly in line with the projection presented in the April Outlook Report, the Bank should continue to examine various indicators and other relevant information carefully to be more certain whether the
projection was likely to materialize and identify the risk factors.
Some members raised developments in the U.S. economy, domestic production, particularly of IT-related goods, wages, and the environment surrounding prices as some of the key factors that should be watched at present, but expressed the view that the Bank should not focus on any specific indicator or areas of the economy since the economic and financial situation changed constantly.
Most members agreed that the Bank should, with a wide-ranging perspective, continue to examine whether the projection was likely to materialize and to monitor risk factors.
A few members said that excessive importance should not be attached to the Monetary Policy Meetings where the interim assessment of the projection was made because the Bank examined whether the economy and prices were developing in line with the projection at every Monetary Policy Meeting.
Members said that, since there was growing speculation among market participants and the media about a raise in the policy interest rate target in the near future, 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, thereby preventing the formation of preconceived ideas about the timing of a policy change.
(하략)
Monetary Policy Meeting
on July 11 and 12, 2007
August 28, 2007
Bank of Japan
(전략)
III. Summary of Discussions on Monetary Policy for the Immediate Future
Given the economic and financial situation, members 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.
On the guideline for money market operations for the intermeeting period ahead, one member said that it would be appropriate to raise the uncollateralized overnight call rate target from around 0.5 percent to around 0.75 percent as the member considered that the
raise was justified by economic conditions.
Against this view, most members said that it would be 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 were of the view that, lthough developments in the economy and prices had been broadly in line with the projection presented in the April Outlook Report, the Bank should continue to examine various indicators and other relevant information carefully to be more certain whether the
projection was likely to materialize and identify the risk factors.
Some members raised developments in the U.S. economy, domestic production, particularly of IT-related goods, wages, and the environment surrounding prices as some of the key factors that should be watched at present, but expressed the view that the Bank should not focus on any specific indicator or areas of the economy since the economic and financial situation changed constantly.
Most members agreed that the Bank should, with a wide-ranging perspective, continue to examine whether the projection was likely to materialize and to monitor risk factors.
A few members said that excessive importance should not be attached to the Monetary Policy Meetings where the interim assessment of the projection was made because the Bank examined whether the economy and prices were developing in line with the projection at every Monetary Policy Meeting.
Members said that, since there was growing speculation among market participants and the media about a raise in the policy interest rate target in the near future, 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, thereby preventing the formation of preconceived ideas about the timing of a policy change.
(하략)
