Japan's economy, in the longer run, is most likely to return onto a path of sustainable growth with price stability; however, the outlook is attended not only by increased downside risks to economic activity but also by decreased upside risks to inflation relative to the recent past.
Given the above assessment and outlook for the economy, the Bank decided on the following measures at the Monetary Policy Meeting held on October 31. BIS Review 132/2008  5  First, the Bank decided to lower the policy rate or the target for the uncollateralized overnight call rate by 20 basis points, from around 0.5 percent to around 0.3 percent.