C.  Importance of flexibility in the conduct of monetary policy  When the price stability target was introduced in January 2013, the Bank clearly stipulated that the conduct of monetary policy has to be flexible by examining various risk factors, including those related to financial imbalances, in addition to the assessment of current developments and outlook for economic activity and prices, from the perspective of achieving sustainable growth with price stability.
The importance of flexibility in monetary policy is what I have been focusing on to date. Monetary policy requires long and variable time lags before its effects permeate the economy, and thereafter prices. Therefore, to achieve a sustainable growth path in the context of price stability, monetary policy needs to be flexible, taking into account future prospects.