Tokyo′s markets have received statements of commitment from many market participants and boast a large number of ratifications among the foreign exchange markets in countries around the world. It can be said that this demonstrates a strong sense of discipline by Tokyo market participants themselves, which seems to contribute to increasing the confidence in Tokyo′s market.
The Reserve Bank already makes regular inflation forecasts using a large macroeconomic model which is based on a wide range of financial and economic equations. In the application of inflation targeting it will be prudent to supplement this large model with a number of smaller and single equation models.