• Cannot deny that BOJ monetary policy has impact on fx
• BOJ policy based only on economy, prices
• Need to monitor downside risks for economy
• Inflation target is understood as flexible measure
• Will conclude discussion of inflation goal next month
• Eased today to keep Japan on sustainable growth path
• Govt steps to improve public finances necessary
• Govt efforts, such as deregulation, also needed to beat deflation
• Fiscal discipline may loosen if Japan becomes accustomed to long period of very low rates
• If people become used to low interest rates, that could reduce incentive for structural reform
• Japan consumer inflation may exceed 1% if steps to boost potential growth bear fruit