Examples of using Forward guidance in English and their translations into Japanese
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At the same time, the Bank introduced the forward guidance that it would continue the policy until the annual rate of change in the consumer price index(CPI, excluding fresh food) registered zero percent or above in a stable manner.
Rather, the Bank should design its forward guidance by clarifying the relationship of that guidance to the inflation rate, inflation expectations, and the output gap, with a view to strengthening its influence on prices.
On this point, one member said that it was desirable to introduce forward guidance for policy rates that would further clarify its relationship with the price stability target.
It is appropriate to consider revising forward guidance for policy rates, given, for example, that uncertainties regarding overseas economies have heightened compared to the time of its introduction.
You may not be familiar with the term, but forward guidance is a measure that guides the future policy path in order to strengthen market confidence and expectations toward monetary policy.
For example, the inflation-overshooting commitment is more powerful than any previous forward guidance and is unprecedented; yet, at the same time it is firmly grounded in economic theories regarding inflation expectation formation developed in recent years.
A change in forward guidance on rates to“interest rates to remain at their present levels at least through the end of 2019”, from“through the summer of 2019”.
In particular, forward guidance that lowers private-sector expectations regarding future short-term rates should cause longer-term interest rates to decline, leading to more accommodative financial conditions.18.
Economists discuss the effectiveness of central bank forward guidance and asset purchase, but the concept of market confidence is missing in their analyses.
Second, if the future is radically uncertain, then the modern central bank practice of giving markets forward guidance may be, well, misguided.
For instance,"forward guidance" and the"purchases of long-term government bonds" to lower the nominal medium- to long-term rates have been adopted by the central banks in Japan, the United States, and Europe.
Moreover, today's decisions will support our forward guidance on the key ECB interest rates and reinforce the fact that there are significant and increasing differences in the monetary policy cycle between major advanced economies.
The effectiveness of forward guidance depends on the strength of the commitment and future policy flexibility, but how to strike a balance between the two is a critical point in discussing forward guidance. .
Note 1 Mr. Y. Harada dissented, considering that it was appropriate to introduce forward guidance that would further clarify its relationship with the price stability target.
Mr. Y. Harada expressed the opinion that it was appropriate to introduce forward guidance for policy rates that would further clarify its relationship with the price stability target.
Expectation management is one of the most fundamental elements of monetary policy conduct, and in particular, forward guidance regarding the future policy stance plays an important role under the low interest rate environment.
The Bank should introduce forward guidance for policy rates and strengthen its commitment to achieving the price stability target, in order to ensure public confidence in its strong stance toward achieving the target.
Moreover, we decided to extend the fixed rate tender procedures with full allotment, at least until the end of 2019 and reiterated our forward guidance on the key ECB interest rates and on our reinvestment policy.
Note 3 Mr. Y. Harada dissented, considering that, as for policy rates, it was appropriate to introduce forward guidance that would further clarify its relationship with the price stability target.
A few members felt that recent economic developments justified a more substantial move at this meeting, but they were willing to accept the stronger forward guidance as a step in the direction of additional accommodation.