We judged, after examining the economic and price situation from the two perspectives outlined above, that an adjustment in the interest rate level was appropriate in order to keep the economy on a desirable path. Such a change, in our view, will contribute to ensuring price stability and achieving sustainable economic growth in the medium to long term.
This policy change was made on the basis of an economic and price forecast, which remained unchanged from the April Outlook Report, and in line with the basic thinking governing the conduct of monetary policy stated in it. We will continue to conduct monetary policy based on the careful  BIS Review 96/2006  3  examination of economic and price conditions.