Future role of monetary policy If Japan’s economy is able to achieve strong growth with further positive changes in economic structure going forward, households’ and firms’ medium- to long-term inflation expectations will rise to around 2 percent, and this will support the observed inflation rate continuing to be stable at around 2 percent.
Given these encouraging economic developments, the Bank of Ghana responded by lowering the prime rate in November, signaling to the market that the economy was entering into a cycle of declining interest rates. 18. Looking ahead, Mr. Chairman, the Central Bank anticipates a much stronger rebound in economic activities in 2010.