Through active media reporting, households and firms are already familiar with the 2 percent price stability target (with a time horizon of about two years) adopted by the Bank. Households, however, may not know whether the 2 percent inflation for fiscal 2014 is the outcome of the first tax hike or monetary easing.
It will examine both upside and downside risks to economic activity and prices, and make adjustments as appropriate. In my view, the criteria for such judgment is that whether various economic entities such as firms and households change their behavioral patterns based on the assumption of a certain level of inflation as I have stated earlier. Thank you.