Minutes of the Monetary Policy Meeting on November 12 and 13, 2007
December 26, 2007
Bank of Japan
III. Summary of Discussions on Monetary Policy for the Immediate Future
Members concurred that, given the economic and financial situation, 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 Outlook for Economic Activity and Prices (hereafter the Outlook Report); however, global
financial markets continued to be unstable, and there was uncertainty regarding global economic developments, for example, downside risks to the U.S. economy; and therefore the Bank should continue to examine economic indicators and other relevant information as well as financial market conditions carefully to grasp the situation accurately.
With regard to the Outlook Report released at the end of October, some members said that financial market conditions since its release had been stable, and this suggested that market participants had understood that there had been no change in the Bank's basic thinking concerning the conduct of monetary policy.
One member, however, expressed the view that, although the most likely projection remained almost the same in the October
Outlook Report, there were more references than before to uncertainty regarding future developments, and thus the Bank's thinking might be seen as difficult to understand. Some
members noted that, in this situation, the timing of a policy change continued to attract market participants' attention. They continued that, while there was a view in the market
that the Bank was eager to raise the policy interest rate based on an optimistic projection, there was also a view that the Bank was unlikely to raise the rate for a while as it was attentive to downside risks to the economy. In the end, members agreed that the Bank should continue to take every opportunity to explain both the standard scenario and the assessment of upside and downside risks, which were described in the October Outlook Report covering a period of one and a half years ahead, and also its basic thinking
concerning the conduct of monetary policy.
※출처: Bank of Japan
December 26, 2007
Bank of Japan
III. Summary of Discussions on Monetary Policy for the Immediate Future
Members concurred that, given the economic and financial situation, 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 Outlook for Economic Activity and Prices (hereafter the Outlook Report); however, global
financial markets continued to be unstable, and there was uncertainty regarding global economic developments, for example, downside risks to the U.S. economy; and therefore the Bank should continue to examine economic indicators and other relevant information as well as financial market conditions carefully to grasp the situation accurately.
With regard to the Outlook Report released at the end of October, some members said that financial market conditions since its release had been stable, and this suggested that market participants had understood that there had been no change in the Bank's basic thinking concerning the conduct of monetary policy.
One member, however, expressed the view that, although the most likely projection remained almost the same in the October
Outlook Report, there were more references than before to uncertainty regarding future developments, and thus the Bank's thinking might be seen as difficult to understand. Some
members noted that, in this situation, the timing of a policy change continued to attract market participants' attention. They continued that, while there was a view in the market
that the Bank was eager to raise the policy interest rate based on an optimistic projection, there was also a view that the Bank was unlikely to raise the rate for a while as it was attentive to downside risks to the economy. In the end, members agreed that the Bank should continue to take every opportunity to explain both the standard scenario and the assessment of upside and downside risks, which were described in the October Outlook Report covering a period of one and a half years ahead, and also its basic thinking
concerning the conduct of monetary policy.
※출처: Bank of Japan
