However, there was a criticism that the old “understanding”, which was a collection of individual Board members’ views, did not represent the “price stability” that is the basis of the policy decisions of the Bank as an institution.
In addition, there was some difficulty with the word “understanding”, in that it failed to deliver the message that the Bank was making active moves toward price stability. Taking account of these problems, the Policy Board members have made a collective decision on how to express the price stability that the Bank should aim to achieve.