Bank of Japan
Minutes of the
Monetary Policy Meeting
on April 8 and 9, 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) Japan's economy was likely to grow at a slower pace for the time being, due to the effects of high
energy and materials prices, and follow a moderate growth path thereafter; (2) however, there were considerable downside risks including uncertainty regarding future developments in overseas economies and global financial markets; and (3) in this situation,
it was appropriate to carefully examine economic and financial developments at home and abroad to grasp the situation more accurately.
Members concurred that the following thinking on the monetary policy stance for the future remained unchanged: as risk factors had been increasing both at home and abroad, the Bank should assess the future paths of the economy and prices, and the likelihood of the projected future paths, as well as both upside and downside risks, after a close examination of economic indicators and other relevant information and of the market situation both at home and abroad, and then it should implement monetary policy in an appropriate manner based on the assessment. One member added that it was not appropriate to predetermine the direction of future monetary policy, because uncertainty regarding future developments
was considerable at present. This member continued that the Bank should assess thoroughly the future economic path giving careful consideration to whether downside risks would decrease, thereby allowing Japan's economy to be on a sustainable growth path, or
whether the probability of such risks materializing and of economic growth subsequently slowing would rise.
Some members said that it was important to continue to conduct money market operations flexibly and in a timely manner, giving due consideration to the situation of financial markets and individual financial institutions, both at home and abroad, because
global financial markets were still nervous, albeit less strained.
※출처: Bank of Japan
Minutes of the
Monetary Policy Meeting
on April 8 and 9, 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) Japan's economy was likely to grow at a slower pace for the time being, due to the effects of high
energy and materials prices, and follow a moderate growth path thereafter; (2) however, there were considerable downside risks including uncertainty regarding future developments in overseas economies and global financial markets; and (3) in this situation,
it was appropriate to carefully examine economic and financial developments at home and abroad to grasp the situation more accurately.
Members concurred that the following thinking on the monetary policy stance for the future remained unchanged: as risk factors had been increasing both at home and abroad, the Bank should assess the future paths of the economy and prices, and the likelihood of the projected future paths, as well as both upside and downside risks, after a close examination of economic indicators and other relevant information and of the market situation both at home and abroad, and then it should implement monetary policy in an appropriate manner based on the assessment. One member added that it was not appropriate to predetermine the direction of future monetary policy, because uncertainty regarding future developments
was considerable at present. This member continued that the Bank should assess thoroughly the future economic path giving careful consideration to whether downside risks would decrease, thereby allowing Japan's economy to be on a sustainable growth path, or
whether the probability of such risks materializing and of economic growth subsequently slowing would rise.
Some members said that it was important to continue to conduct money market operations flexibly and in a timely manner, giving due consideration to the situation of financial markets and individual financial institutions, both at home and abroad, because
global financial markets were still nervous, albeit less strained.
※출처: Bank of Japan
