Based on such recognition, I pointed out that it was appropriate for the Bank to revise the forward guidance for the policy rates to relate it to the price stability target, in addition to encouraging a further widening of the output gap within positive territory through additional easing.
3 Moreover, to overcome deflation completely amid heightening uncertainties regarding economic and price developments, I considered it important to influence the expectations and forecasts of market participants as well as firms and households by implementing the appropriate means to further coordinate fiscal and monetary policy.4 At the July 2019 Monetary Policy Meeting, a new sentence was added at the end of the Statement on Monetary Policy: "In particular, in a situation where downside risks to economic activity and prices, mainly regarding developments in overseas economies, are significant, the Bank will not hesitate to take additional easing measures if there is a greater possibility that the momentum toward achieving the price stability target will be lost."