Asset price fluctuations have important implications for promoting more efficient resource allocations and achieving sustained growth in the long run.
This is because the negative contribution from (weak) rice prices is likely to dissipate and the effects of a reduction in electricity and telephone charges are also expected to ease.
There is a high chance that core consumer prices will turn to be positive toward the end of the year.
As for the short run effects, exchange rate movements influence the economy through changing relative prices between goods at home and abroad.
We will confirm that consumer prices will stabilize at zero or above before taking action.
The staff at the Institute will present an analysis on how asset price fluctuations and subsequent structural adjustments influence sustained economic growth, based on Japan's experience since the second half of the 1980s.
It's necessary to make the judgment calmly and objectively without any preconceived notions about whether the consumer price index excluding fresh food prices has stabilized at zero or above.
People think the withdrawal of monetary accommodation is about to get under way. People can price it in before any possible change (in monetary policy) on a global basis,
Recent empirical studies, however, show such short run effects become small because the exchange rate pass-through to import prices declines.
Japan's economic situation is at an important stage. Price judgment is needed about the future course, but I have no determined idea,
Based on a recovering overall economic climate, the consumer price index, excluding fresh food prices, was at or above zero percent for the third consecutive month since October.
It was determined at today's meeting that we cannot say that core consumer prices have stabilized above zero. The bank has not decided when to shift its policy.
However close attention will have to be paid to rising crude oil prices and their impact on the domestic and overseas economies.
The year-on-year rate of change in consumer prices is projected to be zero percent or to show a slight increase towards the end of this year,
Rises in prices may not accelerate, but it's unlikely that they will fall back into negative territory once they start rising,