C. Future Conduct of Monetary Policy Let me now discuss some salient points regarding the future conduct of monetary policy based on the objectives and effects of such policy and the impact on the JGB market and financial institutions that I have outlined so far.
Prudence is required when conducting monetary policy; decisions must be made after weighing the medium- to long-term positive effects against the unintended side effects. When policy side effects accumulate over an extended period, the risk is that it may prove difficult or even too late to deal with these unintended consequences once they materialize.