With regard to such monetary policy conduct of the Bank, we have sometimes been asked whether the Bank has adopted the so-called “inflation targeting.” In that regard, looking at the monetary policy conduct of other countries which have actually adopted “inflation targeting,” for example, the United Kingdom, the Bank of England conducts flexible monetary policy which takes into account not only developments in prices but also those in other areas, including the real economy and asset prices.
The Bank’s decision this time of “price stability target” is the same as the one many central banks are currently adopting, and it is generally called “flexible inflation targeting.” Within such monetary policy framework the Bank intends to make as decisive policy responses as ever while steadily examining the situation of economic activity and prices.