The Bank has been conducting monetary policy while examining economic and price developments from two perspectives: the baseline scenario for the outlook and risk analysis. In the current situation where downside risks to economic activity and prices are significant, the examination of risks is becoming increasingly important (Chart 11).
In order to make this thinking clearer, the Bank clarified in the July policy statement that it would not hesitate to take additional easing measures if there was a greater possibility that the momentum toward achieving the price stability target would be lost, and emphasized in the September statement that it would reexamine economic and price developments at the October MPM, when it releases the Outlook Report.