However, in line with the recognition that a range of entities, including the government and the private sector, will fulfill their respective roles to overcome deflation, I considered that financial market developments after the introduction of the price stability target of 2 percent appeared to reflect expectations for the Bank’s monetary policy and the government’s various policy measures, and that it was important to further increase credibility regarding the Bank’s decision on the price stability target of 2 percent from the viewpoint of overcoming deflation.
While monitoring the effects of monetary policy and their spread through the economy, the Bank will conduct policy aimed at achieving this target in a responsible manner, by carefully communicating its policy intentions and considering a decisive action for additional monetary easing as necessary.