III. The Bank’s conduct of monetary policy So far, I have explained the reasons why prices are not rising as much despite the tightening labor market conditions. In this regard, some of you may ask why the Bank is aiming at a rise in prices. Rather, it may be natural to believe that lower goods prices are favorable.
Therefore, in explaining the Bank’s conduct of monetary policy, I would like to start with the reason why the Bank is aiming at a situation in which prices rise in a stable manner.