Minutes of the
Monetary Policy Meeting
on March 6 and 7, 2008
(English translation prepared by the Bank's staff based on the Japanese original)
III. 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, given the economic and financial situation, it would be appropriate to maintain the current guideline that the Bank would encourage the uncollateralized overnight call rate to remain at around 0.5 percent. They shared the following view: (1) the virtuous circle of growth in production, income, and spending basically remained in place, and
Japan's economy was likely to continue expanding moderately with price stability; (2) however, there remained considerable uncertainty regarding future developments in overseas economies, global financial markets, and international commodity prices; (3) the pace of growth of Japan's economy was slowing recently due to the effects of high energy and materials prices in addition to the drop in housing investment; and (4) in this situation, it was appropriate to carefully examine economic and financial developments at home and abroad to grasp the situation more accurately. A few members said that the Bank should continue to conduct money market operations flexibly and in a timely manner through the fiscal year-end, giving due consideration to the situation of financial markets and individual financial institutions, both at home and abroad.
Members concurred that their basic thinking on the monetary policy stance for the future remained unchanged. They agreed that, as risk factors had been increasing both at home and abroad, the Bank should, in a forward-looking manner, assess the likelihood of
the projected future paths of the economy and prices, as well as both upside and downside risks, and make policy decisions based on the assessment. One member said that the sustainability of the virtuous circle of growth in production, income, and spending should be closely examined, given that firms had recently become noticeably cautious. A different member assessed the outlook for economic activity and prices as well as risks from the "two perspectives," and expressed the following view: the scenario that Japan's economy would return to a path of moderate expansion after a slowdown in the short run remained unchanged; however, in addition to uncertainty regarding future developments in the U.S. economy and global financial markets, the possibility that high energy and materials prices might negatively affect small firms' performance and consumer sentiment in Japan, another risk factor, was becoming stronger. Based on this view, the member continued that, while maintaining the basic thinking regarding the conduct of monetary policy, the Bank should flexibly take the policy action that was considered most appropriate to the situation, based on a thorough assessment of the likelihood of the projected future
paths of the economy and prices, as well as both upside and downside risks. Another member expressed the view that, although the current general direction of adjustment in the policy interest rate was considered to be appropriate, in the future if the situation called for an easing, the Bank should flexibly take an appropriate action.
※출처: Bank of Japan
Monetary Policy Meeting
on March 6 and 7, 2008
(English translation prepared by the Bank's staff based on the Japanese original)
III. 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, given the economic and financial situation, it would be appropriate to maintain the current guideline that the Bank would encourage the uncollateralized overnight call rate to remain at around 0.5 percent. They shared the following view: (1) the virtuous circle of growth in production, income, and spending basically remained in place, and
Japan's economy was likely to continue expanding moderately with price stability; (2) however, there remained considerable uncertainty regarding future developments in overseas economies, global financial markets, and international commodity prices; (3) the pace of growth of Japan's economy was slowing recently due to the effects of high energy and materials prices in addition to the drop in housing investment; and (4) in this situation, it was appropriate to carefully examine economic and financial developments at home and abroad to grasp the situation more accurately. A few members said that the Bank should continue to conduct money market operations flexibly and in a timely manner through the fiscal year-end, giving due consideration to the situation of financial markets and individual financial institutions, both at home and abroad.
Members concurred that their basic thinking on the monetary policy stance for the future remained unchanged. They agreed that, as risk factors had been increasing both at home and abroad, the Bank should, in a forward-looking manner, assess the likelihood of
the projected future paths of the economy and prices, as well as both upside and downside risks, and make policy decisions based on the assessment. One member said that the sustainability of the virtuous circle of growth in production, income, and spending should be closely examined, given that firms had recently become noticeably cautious. A different member assessed the outlook for economic activity and prices as well as risks from the "two perspectives," and expressed the following view: the scenario that Japan's economy would return to a path of moderate expansion after a slowdown in the short run remained unchanged; however, in addition to uncertainty regarding future developments in the U.S. economy and global financial markets, the possibility that high energy and materials prices might negatively affect small firms' performance and consumer sentiment in Japan, another risk factor, was becoming stronger. Based on this view, the member continued that, while maintaining the basic thinking regarding the conduct of monetary policy, the Bank should flexibly take the policy action that was considered most appropriate to the situation, based on a thorough assessment of the likelihood of the projected future
paths of the economy and prices, as well as both upside and downside risks. Another member expressed the view that, although the current general direction of adjustment in the policy interest rate was considered to be appropriate, in the future if the situation called for an easing, the Bank should flexibly take an appropriate action.
※출처: Bank of Japan
