Moreover, since global financial markets are expected to remain unstable and there are various uncertainties in the outlook for economic activity and prices, it is essential for the Bank to ensure the stability of the Japanese financial markets. Closing remarks Thus far, I have spoken about the issues facing Japan's economy and the Bank's thinking regarding the conduct of monetary policy.
It takes about one and a half to two years for the effects of monetary policy to permeate throughout the economy. It is therefore extremely important to make macroeconomic projections for the period covering this lag. You may be able to imagine the difficulty in  BIS Review 104/2008  5  making an accurate projection.