Minutes of the Monetary Policy Meeting on October 10 and 11, 2007
November 16, 2007
Bank of Japan
IV. 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.
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 expressed the following view: economic indicators suggested that Japan's economy was likely to continue sustainable growth under price stability broadly in line with the projection presented in the April 2007 Outlook for Economic Activity and Prices (hereafter the Outlook Report); however, global financial markets continued to be unstable on the whole, albeit with some signs of improvement, and there was uncertainty regarding global economic developments due mainly to downside risks to the U.S. economy; and therefore the Bank should continue to examine upcoming economic indicators and other relevant information as well as financial market conditions carefully.
A few members said that although Japan's economy was likely to continue sustainable growth under price stability and any policy change should be made in accordance with improvements in the economic and price situation, at present there was time to carefully assess developments in financial markets and the global economy as well as their effects on Japan's economy. One of these members added that price and economic developments had so far been in line with the projection, but near the lower end of it. A different member said that once the Bank became confident with reasonable certainty, judging from economic indicators and other supporting evidence, that the baseline scenario was likely to materialize, the Bank should not hesitate to implement a policy change.
Another member commented that the upcoming Outlook Report was important in terms of the Bank's communication with the market, since market participants were keenly interested in it as there remained uncertainty regarding developments in global financial markets and the global economy. The member said that members should therefore discuss the Outlook Report in depth at the next meeting.
출처: 일본은행(BOJ)
November 16, 2007
Bank of Japan
IV. 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.
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 expressed the following view: economic indicators suggested that Japan's economy was likely to continue sustainable growth under price stability broadly in line with the projection presented in the April 2007 Outlook for Economic Activity and Prices (hereafter the Outlook Report); however, global financial markets continued to be unstable on the whole, albeit with some signs of improvement, and there was uncertainty regarding global economic developments due mainly to downside risks to the U.S. economy; and therefore the Bank should continue to examine upcoming economic indicators and other relevant information as well as financial market conditions carefully.
A few members said that although Japan's economy was likely to continue sustainable growth under price stability and any policy change should be made in accordance with improvements in the economic and price situation, at present there was time to carefully assess developments in financial markets and the global economy as well as their effects on Japan's economy. One of these members added that price and economic developments had so far been in line with the projection, but near the lower end of it. A different member said that once the Bank became confident with reasonable certainty, judging from economic indicators and other supporting evidence, that the baseline scenario was likely to materialize, the Bank should not hesitate to implement a policy change.
Another member commented that the upcoming Outlook Report was important in terms of the Bank's communication with the market, since market participants were keenly interested in it as there remained uncertainty regarding developments in global financial markets and the global economy. The member said that members should therefore discuss the Outlook Report in depth at the next meeting.
출처: 일본은행(BOJ)
