Further Attention to the Financial System In addition to these three policy actions, given that monetary easing is expected to be continued for a long time, it has been decided that staff of the Financial System and Bank Examination Department, which is in charge of monitoring developments in the financial system, will attend the meeting and explain those developments to the Policy Board at the MPMs when the Outlook for Economic Activity and Prices is decided.
In this respect, the results of a recent study on oil price shocks are striking. It found that an oil price shock that is related to political factors and supply side conditions has more severe implications than other types of oil price shocks, such as shocks related to demand conditions.