Monetary tightening under such circumstances may impair the force of recovery that had at last started to grow. In other words, monetary tightening at this time will be premature. Thus, it is extremely important that monetary policy be managed from a medium to long-term perspective.
With this in mind, the Bank, in its management of monetary policy, has emphasized accurate prediction of economic and price developments rather than the economic condition at the time. Further, in accurately predicting these developments, the Bank has focused on the strength of the self-sustained recovery in the private sector.