I would like to say a few words about the points I see as essential in the conduct of monetary policy in Japan going forward. Let me touch on the impact of foreign exchange rates and crude oil prices, mainly on economic activity and prices, as this has become a hot topic lately.
Faced with the recent yen depreciation and rising crude oil prices, some have pointed out the risk of stagflation, while others say that the Bank should urgently revise its monetary policy to avoid materialization of such risk. The Bank has been carefully analyzing and discussing developments in economic activity and prices, including these arguments.