A different member said that, particularly in the ASEAN economies, negative effects of the rise in crude oil prices were cause for concern, but these economies were likely to remain on an expanding trend partly because there had also been positive effects such as an increase in their exports to the Middle East.
A different member noted that it was important for the Bank to explicitly convey to the market that it was not different from other central banks in terms of the direction of monetary policy by presenting its determination that it would persistently continue with the powerful monetary easing.
A different member expressed the view that, if firms' room to raise productivity decreased, upward pressure on wages resulting from the positive output gap would be reflected in observed wages, thereby inducing a change in firms' price-setting stance.
A different member commented that, since the recent sluggishness in prices was unlikely to be attributable solely to a mere shortage of demand, it was not necessarily appropriate to adopt a policy that would forcibly push up demand in a short period of time.
Further, a different member expressed concern that the market mechanism might not function properly if banks and firms increased their ties within their traditional business groupings in the process of corporate restructuring and efforts to strengthen the soundness of the financial system.
A different member expressed the opinion that the Bank should continue to ensure the public understood that applying the proviso was not a first step toward changing the framework of the quantitative easing policy, but was aimed at smoothly maintaining that framework.
A different member expressed the recognition that it was essential for the Bank to aim to achieve the price stability target while gaining the public's understanding on the importance of overcoming deflation, so that a shift in firms' stance toward raising prices would not be interpreted in a negative manner.
A different member expressed the view that, given that the ratio of the monetary base to nominal GDP was already at a high level, it was now important for the Bank to promote the effective use of the accumulated monetary base by strengthening the transmission mechanism of monetary easing.
A different member expressed the view that appropriate conduct of macroeconomic policy-- such as adjusting the speed of fiscal consolidation flexibly to the extent that economic recovery would not be disrupted-- had been contributing significantly to the recovery of the European economy.
Another member expressed the opinion that, as the potential growth rate of the U.S. economy was estimated to be about 4 percent, an actual growth rate of below 3 percent would not be regarded as a soft but as a hard landing.
Another member said that inventory adjustments in Asia and a deterioration in the supply-demand balance of materials, both due to a slowdown in the U.S. economy, and uncertainty about the outlook, were to some extent affecting corporate sentiment and the stock market.
However, another member cautioned that, given the situation of the U.S. economy, developments in exports and production in the first half of fiscal 2003 required monitoring, although the scenario of an eventual recovery in both of them remained intact.
Another member commented that the problems in Korea and Taiwan were cause for concern and those of the latter included a decline in exports of high-tech products, political uncertainty, and an increase in the share of nonperforming loans in the assets of the banking sector.
One member expressed the opposite opinion that the current monetary easing was insufficient and the Bank should therefore shift to full-scale quantitative easing by, among other things, increasing the amount of excess reserves by 500 billion yen every month.
Another member commented that, because the economy was in a delicate stage and macroeconomic statistics might not fully reflect the movements in new industries, attention should be paid not only to macroeconomic figures but also to developments of each industry.
A different member was of the opinion that, given that the side effects of monetary easing would accumulate as economic activity recently had been showing signs of a phase shift, it was necessary to strengthen monetary easing in order to achieve the price stability target of 2 percent at the earliest possible time.
A different member pointed out that, given that the adaptive formation mechanism of inflation expectations played a large role in Japan, it could not be ignored when examining future price developments that items such as administered prices, housing rent, and charges for mobile phone services-- all of which have large weights in the CPI-- were hardly responsive to the output gap.
A different member expressed the view that it was likely that U.S. firms had accumulated excess capital stock and their employment costs had risen too high during the prolonged economic expansion, and thus many of these firms would start restricting their business fixed investment and reducing their workforce, which could negatively affect the household sector.
A different member pointed out that, in a situation where there were high uncertainties regarding economic and price developments, it was important to sustain moderate economic expansion while avoiding an accumulation of imbalances, and essential to persistently continue with the powerful monetary easing while carefully examining the positive effects and side effects of the policy.
A different member said that consumer sentiment had tended to deteriorate due to increasing uncertainty about the employment situation, and in view of this, it was important to ensure a safety net to alleviate the anxiety of the household sector over the future and this could encourage households to spend more of their financial assets.
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