I believe that the decline in international commodity prices implies a decrease in income transfers from Japan to commodity-exporting countries, which is clearly a positive factor for Japan’s economy and also for prices from a longer-term perspective.
The introduction of MSS has succeeded broadly in restoring Liquidity Adjustment Facility (LAF) to its intended function of daily liquidity management. The MSS has served as a very useful instrument for medium term monetary and liquidity management. It has been unwound at times of low capital flows and built up when excess capital flows could lead to excess domestic liquidity.