Examples of using Market functioning in English and their translations into Japanese
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One member expressed the view that it was necessary to maintain the current monetary easing policy, paying more attention than before to the side effects on financial institutions and market functioning while cautiously examining economic developments for the time being.
One member expressed the view that, if the economic condition continued with the output gap being maintained in positive territory, there would be room for the Bank to consider making its monetary policy more flexible in the future with a view to maintaining market functioning while continuing with the current policy framework.
This member also noted that, when making assessments on the financial system and market functioning, it was necessary to deepen discussion of how they should be assessed in line with the price stability target, rather than focusing on individual indicators.
It is necessary to maintain the current monetary easing policy for an extended period of time, paying closer attention than before to the side effects on financial institutions and market functioning while examining developments in the global economy and the effects of the scheduled consumption tax hike.
In continuing with monetary easing, the Bank judged it necessary to allow the long-term yields to move upward and downward to some extent mainly depending on developments in economic activity and prices, thereby maintaining the market functioning so as not to create more concern.
For instance, from autumn 2008, as the functioning of markets declined, prices of securitized products fell all at once, leading to concerns about capital shortages at financial institutions. This further paralyzed market functioning and intensified the downward spiral.
In addition, if the Bank should intervene excessively in a particular market, there is a concern that it might distort market functioning, whereby funds are efficiently allocated, due to excessive concentration of transactions in particular issues purchased by the Bank.
Impact of Monetary Policy on JGB and Other Markets First, Japan's JGB market has indeed regained some stability in response to the Bank's monetary policy decision released on July 31. Nevertheless, some developments have given rise to concerns that market functioning has deteriorated.
As an initiative to enhance market functioning through clearer dialogue among market participants, the Tokyo Foreign Exchange Market Committee developed the"Tokyo Blue Book" in April last year.5 The book provides guidance with succinct, clear statements and practical examples to help promote understanding of the code among Tokyo market participants.
One member expressed the view that, despite high uncertainties regarding overseas economies going forward, the Bank should aim to achieve the price stability target by persistently continuing with the current monetary easing policy while paying closer attention than before to the side effects on the functioning of financial intermediation and the market functioning.
In fact, the minutes of the FOMC on June 23 and 24 state that"the asset purchase programs were intended to support economic activity by improving market functioning and reducing interest rates on mortgage loans and other long-term credit to households and businesses relative to what they otherwise would have been.
Despite high uncertainties regarding overseas economies going forward, the Bank, in a situation where a policy mix of monetary and fiscal policies are being sustained, should aim to achieve the price stability target by persistently continuing with the current monetary easing policy while paying closer attention than before to the side effects on the functioning of financial intermediation and the market functioning.
As you know, in the latter part of 2008 and early 2009, the Federal Reserve took extraordinary steps to provide liquidity and support credit market functioning, including the establishment of a number of emergency lending facilities and the creation or extension of currency swap agreements with 14 central banks around the world.
In the minutes, other potential risks were also pointed out: the possibility of a rise in speculation that the Bank is engaged in financing fiscal deficits, the possibility that the financial system would become more vulnerable to risks with financial institutions' profits being squeezed, and the possibility that market functioning would be impaired considerably.
But ensuring continuous market function is equally important.
Competition is a part of the market functions.
However, lamentably, it destroys the way the market functions.
The main purpose of protection is not to protect the industries of one's own country but to protect market functions.
SBI Liquidly Market provides efficient market functions, with a view to building a highly competitive marketplace that ensures transparency for the participating FX trading companies by concentrating all liquidity on the market it creates.
We will devote ourselves towards developing a low-cost, safe and secure FX trading environment available for all individual investors in Japan and overseas and further improving and expanding the market function that we provide.