However, a revision of monetary policy is still premature because there is considerable uncertainty about the baseline scenario regarding the price outlook that I described earlier. Let me reiterate the Bank's baseline scenario: the year-on-year rate of increase in the CPI is likely to decelerate temporarily and thereafter accelerate again toward the Bank's price stability target.
In deciding whether or not monetary policy should be revised, it is important to judge, under the baseline scenario, whether the CPI will move toward a sustainable and stable rise when it starts to increase again following the temporary deceleration.