The Bank's Conduct of Monetary Policy Next, I will elaborate on the Bank's thinking behind the conduct of monetary policy. As stipulated in the Bank of Japan Act, the objective of the Bank's monetary policy is  4  "achieving price stability, thereby contributing to the sound development of the national economy."
The specific number representing "price stability" is "2 percent" in terms of the year-on-year rate of change in the CPI. For reasons why this needs to be 2 percent, I will explain three points in sequence: a bias in price statistics, securing policy room for the future, and a global standard. Let me start with a bias in price statistics.