Minutes of the Monetary Policy Meeting

on July 12 and 13, 2005
(English translation prepared by the Bank's staff based on the Japanese original)

August 12, 2005
Bank of Japan

A Monetary Policy Meeting of the Bank of Japan Policy Board was held in the Head Office of the Bank of Japan in Tokyo on Tuesday, July 12, 2005, from 2:00 p.m. to 3:38 p.m., and on Wednesday, July 13, from 9:00 a.m. to 12:48 p.m.¹

Policy Board Members Present Mr. T. Fukui, Chairman, Governor of the Bank of Japan
Mr. T. Muto, Deputy Governor of the Bank of Japan
Mr. K. Iwata, Deputy Governor of the Bank of Japan
Ms. M. Suda
Mr. S. Nakahara
Mr. H. Haru
Mr. T. Fukuma
Mr. A. Mizuno
Mr. K. G. Nishimura

Government Representatives Present Mr. I. Ueda, Senior Vice Minister of Finance, Ministry of Finance²
Mr. M. Ishii, Deputy Vice Minister for Policy Planning and Coordination, Ministry of Finance³
Mr. J. Hamano, Director General for Economic and Fiscal Management, Cabinet Office
Reporting Staff Mr. E. Hirano, Executive Director (Assistant Governor)
Mr. M. Shirakawa, Executive Director
Mr. A. Yamamoto, Executive Director
Mr. H. Yamaguchi, Director-General, Monetary Affairs Department
Mr. S. Uchida, Senior Economist, Monetary Affairs Department
Mr. H. Nakaso, Director-General, Financial Markets Department
Mr. H. Hayakawa, Director-General, Research and Statistics Department
Mr. K. Momma, Deputy Director-General, Research and Statistics Department
Mr. A. Horii, Director-General, International Department
Secretariat of the Monetary Policy Meeting Mr. K. Akiyama, Director-General, Secretariat of the Policy Board
Mr. T. Kozu, Adviser to the Governor, Secretariat of the Policy Board
Mr. K. Murakami, Director, Secretariat of the Policy Board
Mr. T. Kato, Senior Economist, Monetary Affairs Department
Mr. K. Masaki, Senior Economist, Monetary Affairs Department

The minutes of this meeting were approved by the Policy Board at the Monetary Policy Meeting held on August 8 and 9, 2005 as "a document which contains an outline of the discussion at the meeting" stipulated in Article 20, Paragraph 1 of the Bank of Japan Law of 1997. Those present are referred to by their titles at the time of the meeting.
Mr. I. Ueda was present on July 13.
Mr. M. Ishii was present on July 12.

I. Summary of Staff Reports on Economic and Financial Developments⁴

A. Money Market Operations in the Intermeeting Period

The Bank conducted market operations in accordance with the guideline decided at the previous meeting on June 14 and 15, 2005.⁵ The outstanding balance of current accounts at the Bank moved in the 31-35 trillion yen range. Meanwhile, undersubscription occurred repeatedly in the Bank's funds-supplying operations against the background of its provision of ample liquidity.

4Reports were made based on information available at the time of the meeting.
5The guideline was as follows:
The Bank of Japan will conduct money market operations, aiming at the outstanding balance of current accounts held at the Bank at around 30 to 35 trillion yen.
Should there be a risk of financial market instability, such as a surge in liquidity demand, the Bank will provide more liquidity irrespective of the above target. When it is judged that liquidity demand is exceptionally weak considering such factors as responses of financial institutions to the Bank's funds-supplying operations, there may be cases where the balance of current accounts falls short of the target.

B. Recent Developments in Financial Markets

The weighted average of the uncollateralized overnight call rate was at around zero percent. Interest rates on term instruments were stable at low levels.

Japanese stock prices were firm, reflecting the depreciation of the yen against the U.S. dollar and some stronger-than-expected domestic economic indicators. Recently, the Nikkei 225 Stock Average was moving in the range of 11,500-12,000 yen.

Long-term interest rates declined to the 1.15-1.20 percent level reflecting a fall in interest rates in the United States and Europe. Thereafter they rose, partly in response to a rise in interest rates in these economies and to some stronger-than-expected domestic economic indicators. Recently, they were moving in the range of 1.20-1.25 percent.

The yen had depreciated against the U.S. dollar, as the dollar was purchased against the background of the prospect of a wider interest rate differential between Japan and the United States. Recently, the yen was being traded in the range of 111-113 yen against the dollar.

C. Overseas Economic and Financial Developments

The U.S. economy continued to expand steadily at a pace around its potential growth rate. With regard to final demand, while net exports made a substantial negative contribution, domestic private demand continued to grow solidly, although at a somewhat slower pace. The inflation rate had been rising steadily, albeit at a moderate pace.

Sluggishness persisted in the euro area economy. For example, exports were on a somewhat weak trend, and production was on a declining trend albeit with some fluctuations.

With regard to East Asian economies, in China both domestic and external demand continued to expand strongly. The pace of increase in China's imports decelerated significantly due to such factors as inventory adjustments in some industries and a decline in the pace of increase in new investment brought about by the permeation of the government's measures to contain the overheating of the economy. The NIEs and ASEAN economies continued to expand at a moderate pace.

In U.S. and European financial markets, long-term interest rates declined temporarily in both the United States and Europe, but then rose to close to the levels at the time of the previous meeting. Stock prices showed mixed developments across countries: they were weak in the United States, almost flat in Germany, and had increased in the United Kingdom.

In financial markets in many emerging economies, their currencies and stock prices weakened reflecting uncertainty over the outlook due to high crude oil prices. Meanwhile, yield differentials between their sovereign bonds and U.S. Treasuries narrowed.

D. Economic and Financial Developments in Japan

1. Economic developments

Despite the expanding trend of overseas economies, the momentum of growth in exports remained weak mainly reflecting effects that appeared to stem from measures taken in China to cool the overheating economy. Growth in exports was projected to accelerate gradually, since it was expected that overseas economies would continue to expand, particularly those of the United States and East Asia, and also that adjustment pressures in the IT-related sectors would continue to ease further.

In the corporate sector, business fixed investment had continued to increase, as corporate profits had remained high and business sentiment had shown improvement again. Business fixed investment was expected to continue increasing, since increases in both domestic and external demand, as well as high corporate profits, were projected to continue. In the June Tankan (Short-Term Economic Survey of Enterprises in Japan), business fixed investment plans of large manufacturing firms for fiscal 2005 registered a substantial increase as they did in fiscal 2004, and those of large nonmanufacturing firms were the strongest in recent years. Furthermore, those of small firms were relatively strong for this time of year.

Production was on a gradual uptrend as inventory adjustments in the IT-related sectors were progressing. Industrial production in April-May remained more or less flat on the whole. This, however, reflected a drop in reaction to the temporary rise in steel ships and chemicals, and hence, on average, production seemed to be on a moderate uptrend. In light of the increases in demand both at home and abroad, as well as the progress of adjustments in the IT-related sectors, production was expected to follow an increasing trend.

Inventories had recently been flat, although they remained low from a long-term perspective. Although inventories of electronic parts and devices had increased slightly in April-May, inventory adjustments were basically making steady progress, taking into account the significant progress in adjustments in the January-March quarter, improvement in the inventory level diffusion index for the electrical machinery industry in the June Tankan, and anecdotal information in, for example, the Regional Economic Report.

As for the employment and income situation, the number of employees had been increasing and the ratio of part-time workers had been declining gradually in line with the improvement in indicators for labor market conditions. Regarding wages, special payments had been on an uptrend and regular payments had recently picked up, albeit marginally, mainly reflecting developments in the ratio of part-time workers. As a result, it was becoming clearer that nominal wages per worker had stopped declining. Under these circumstances, household income had been rising moderately, and it was expected to continue increasing gradually.

Private consumption had been steady. Indicators of private consumption, such as the number of new passenger-car registrations (excluding small cars with engine sizes of 660 cc or less), sales of electrical appliances, and sales at department stores, continued to show steady developments in and after April, following the January-March quarter when many indicators showed improvement in consumption. Private consumption was projected to continue recovering steadily, against the background of a gradual increase in household income.

Domestic corporate goods prices had increased, mainly reflecting the effects of the rise in crude oil prices. They were likely to continue on an increasing trend, but the rate of growth was expected to slow for the time being. Consumer prices (excluding fresh food) had basically been declining slightly on a year-on-year basis. They were projected to continue falling slightly on a year-on-year basis for the time being, partly reflecting the effects from the reduction in electricity and telephone charges, although supply and demand conditions were likely to continue improving gradually.

2. Financial environment

The environment for corporate finance was becoming more accommodative on the whole. The lending attitude of private banks was becoming more accommodative, and that of financial institutions as perceived by firms, including small firms, had also been improving. Under these circumstances, the year-on-year rate of decline in lending by private banks had been diminishing at a moderate pace.

With regard to financing through capital markets, the issuing environment for CP and corporate bonds continued to be favorable, and the amount outstanding of CP and corporate bonds issued had been around or slightly above the previous year's level.

The year-on-year growth rate of the monetary base and that of the money stock (M2+CDs) were at the 1.0-2.0 percent level.

II. Summary of Discussions by the Policy Board on Economic and Financial Developments

A. Economic Developments

On the current state of Japan's economy, members concurred that, although it could not be judged that the economy had definitely moved out of its temporary pause, it was emerging from it.

Members mentioned the following as the basis for this view. First, although the momentum of growth in exports remained weak, in domestic private demand, business fixed investment had continued to increase and private consumption had been steady. And second, although inventory adjustments in IT-related sectors were progressing steadily, they could still not be judged to have been completed. A few members commented that it was also confirmed at the meeting of general managers of the Bank's branches that Japan's economy continued to recover on the whole despite some regional variation.

Members agreed that overseas economies, particularly those of the United States and East Asia, continued to expand, and were expected to keep expanding. However, some members said that attention should continue to be paid to whether there was a possibility that the rise in crude oil prices might cause a sharp deceleration of the world economy, particularly the U.S. economy, and whether the slowdown of production in manufacturing, which was observable globally, would persist.

Some members commented that the U.S. economy continued to expand steadily as seen in the fact that the number of employees and the unemployment rate were on an improving trend on the whole, although the pace of economic expansion was decelerating somewhat as evidenced, for example, in the slowdown of production in manufacturing. These members expressed the view that the U.S. economy was likely to continue expanding at a pace around its potential growth rate.

With regard to East Asian economies, many members commented that both domestic and external demand continued to expand strongly in China, and that the NIEs and ASEAN economies continued to expand at a moderate pace. Many members referred to the fact that the pace of increase in China's imports continued to decelerate significantly, and commented that the basic background to this seemed to be pressures to adjust inventories for example, stemming from domestic factors such as the government's measures to contain the overheating of the economy.

Members generally agreed that the momentum of growth in Japan's exports, especially to China, remained weak, but exports were likely to be on an uptrend in a situation where overseas economies overall were expected to continue to expand. One member said that exports to China would recover before long, partly because inventory adjustments there seemed to be approaching completion. Another member, however, expressed the view that exports were unlikely to exhibit the high growth observed during the first half of 2004, mainly because the pace of recovery in global IT-related demand was projected to be moderate.

Members agreed that domestic private demand was deviating slightly above the outlook presented in the Outlook for Economic Activity and Prices (hereafter the Outlook Report) released in April 2005.

A few members said that corporate profits remained high, as was confirmed, for example, from the ratio of current profits to sales in the June Tankan. One member said that, although in the June Tankan firms might not have fully factored in the rise in crude oil prices, they had assumed a yen exchange rate higher than the current level, which would contribute to corporate profits. The member continued that, taking both factors into consideration, firms' estimates of profits were likely to be achieved. Some members said that, as was evident from the June Tankan, business fixed investment continued to increase, against the background of continued high corporate profits and the fact that excess capital stock had almost dissipated. A few members commented that the strength of business fixed investment was observed over a wider range of industries or sizes of firms, with that of nonmanufacturers and small firms being relatively strong.

Some members said that the June Tankan indicated that business sentiment was improving in a wide range of industries, both in manufacturing and nonmanufacturing. One member commented on the slight deterioration in firms' perception of future business conditions compared with their perception of current business conditions in the June Tankan. Taking into account both the improvement in the perception of current business conditions and the deterioration in that of future business conditions, it was reasonable to assess overall business sentiment as having remained unchanged. In relation to this, one member said that the deterioration in firms' perception of future business conditions compared with their perception of current business conditions was marginal. A different member said that, given the uncertainty of future developments in materials prices, it was becoming difficult for corporate management to project higher profits in the current situation where the ratio of current profits to sales was above the peak recorded during the bubble period.

Members agreed that the positive effects of the favorable performance of the corporate sector were steadily spreading to the household sector.

As for the employment and income situation, a few members said that since the number of employees had been increasing, and wages had stopped declining against the background of the fact that the ratio of part-time workers had started to decline, household income had been rising moderately. It was likely that the rising trend of household income would become more evident, as firms' perception that they had excess labor had almost dissipated.

Some members noted that private consumption had been steady, partly underpinned by the increase in household income. One member said that the favorable sales of, for example, automobiles and at some retailers were partly due to the fact that suppliers had accurately identified consumers' preferences.

With regard to production and inventories, some members said that, although the statistics indicated that production had been more or less flat on average since April, after having posted relatively high growth in the January-March quarter, it could be said to be on a moderate uptrend if the fluctuations in steel ships and chemicals were smoothed out.

A few members commented on adjustments in IT-related sectors, pointing out that the Indices of Industrial Production showed that inventory adjustments of electronic parts and devices had regressed slightly. They expressed the view that the pace of adjustments in IT-related sectors had been slightly slower than expected, partly because growth in domestic semiconductor sales and in orders for semiconductor manufacturing equipment was negative against the background of the sluggish growth of semiconductor sales worldwide. Against this view, some members said that inventory adjustments seemed to be progressing steadily, judging in part from anecdotal information obtained from firms and reports at the meeting of general managers of the Bank's branches, the diffusion indices for business conditions and inventories by industry in the June Tankan, as well as a recovery in exports of IT-related goods from the NIEs and ASEAN economies. A few members said that it was notable that in spite of the ongoing adjustments in IT-related sectors, business performance of manufacturers in non-IT-related sectors and nonmanufacturers such as those in the services industry had been good.

On prices, members expressed the view that domestic corporate goods prices had increased reflecting the effects of the rise in crude oil prices, and they were likely to continue on an increasing trend, but the rate of growth was expected to slow for the time being. Members concurred that consumer prices had basically been declining slightly on a year-on-year basis, albeit with some fluctuations due to factors such as developments in petroleum product prices, and that this would continue for some time due partly to the effects from the reduction in electricity and telephone charges.

A few members expressed the view that the year-on-year rate of change in consumer prices could become positive during the period from the end of 2005 through early 2006, with the effects of special factors such as the reduction in electricity and telephone charges falling off. A few other members said that given the slight changes in the wage situation, attention should be paid to how it affected future developments in unit labor cost and other factors underlying prices.

B. Financial Developments

On the financial front, a few members expressed the view that the financial environment remained extremely accommodative, as evidenced by firms' perception of their financial positions and the lending attitude of financial institutions as perceived by firms.

As for developments in financial markets, a few members said that Japanese stock prices were firm, and long-term interest rates, which had declined temporarily, started to rise after the release of the June Tankan. Some members expressed the view that the terrorist attacks in London had had no significant effect on Japan's financial markets, partly because financial markets overseas, including London, had been calm. They added that close monitoring was required for effects, if any, of the terrorist attacks in London on Japan's financial markets and economic activity.

C. Interim Assessment

Given the above assessment of economic activity, prices, and financial developments in Japan, members agreed on the following interim assessment in relation to the outlook presented in the April Outlook Report. First, Japan's economy had broadly been in line with the outlook and was expected to continue to be so, given that domestic private demand had deviated slightly above the outlook while exports, particularly to China, had deviated slightly below it. Second, domestic corporate goods prices in fiscal 2005 were expected to deviate above the outlook. In fiscal 2006, they were expected to be broadly in line with it, although this depended on commodity prices both at home and abroad. And third, consumer prices were expected to be broadly in line with the outlook. One member said that close attention should be paid to whether the driving force of the economic recovery mechanism would shift to domestic private demand.

As risk factors to which attention should be paid for some time, many members raised developments in the Chinese economy and effects of the rise in crude oil prices on Japan's economic activity and prices.

Many members said that close monitoring was required of developments in the Chinese economy, raising the following as examples of causes for concern: uncertainty regarding the timing of completion of inventory adjustments; speculations about revaluation of the renminbi; infrastructural bottlenecks such as electricity and water shortages; frequent labor disputes; and deceleration in investment from Japan.

Some members noted the risk that the rise in crude oil prices might be prolonged against the background of the increase in demand reflecting economic expansion such as in the United States, as well as in Brazil, Russia, India, and China-the BRICs economies. If the rise was prolonged, its effects on corporate profits and private consumption, a possible rise in concerns about inflation, and a resulting increase in long-term interest rates required close monitoring.

On this basis, members agreed that, regarding risk factors that could cause positive and negative deviations, attention should continue to be paid to the three factors presented in the April Outlook Report.

III. Summary of Discussions on Monetary Policy for the Immediate Future

On the monetary policy stance for the immediate future, members agreed that, in a situation where consumer prices had basically been declining slightly on a year-on-year basis, the Bank should continue to firmly maintain the current framework of the quantitative easing policy in accordance with the conditions in the Bank's commitment.

A few members expressed the view that it would be appropriate to lower the target range for the outstanding balance of current accounts at the Bank in order to conduct the quantitative easing policy smoothly, given that as concern about financial system stability was abating, liquidity demand among financial institutions was declining and they were feeling more strongly that there was an abundance of liquidity.

Against this view, the majority of members said that it was appropriate to maintain the current guideline for money market operations, including the proviso, given the above assessment of economic activity and prices. One member said that, given the possibility of a lowering of the target range for the outstanding balance of current accounts at the Bank being interpreted as a tightening of monetary policy, the Bank should carefully examine the economic and financial situation bearing this in mind. A different member said that, although carefully lowering the target range would be one of the options in the future, it was appropriate to maintain the current guideline for money market operations in the current economic and price situation.

Some members commented on the conduct of money market operations in view of the fact that the issuance of Japanese government securities, tax payments, and other factors would push down the current account balance at the Bank further from late July through the beginning of August. These members said that there might be cases where the outstanding balance of current accounts fell short of the target range in a situation where the Bank was doing its utmost to provide funds while at the same time giving due consideration to the effects on the functioning of the market.

Some members said that, given that the environment surrounding prices had been changing as seen in the fact that the change in the consumer price index had registered zero percent on a year-on-year basis in May, if the outstanding balance of current accounts fell short of the target range, this could provoke further speculation among market participants. These members continued that the Bank should carefully explain to the public that it had amended the proviso in order to smoothly conduct the quantitative easing policy, and, given the current environment surrounding prices, it should communicate the following three points to the public. First, the Bank would not change its basic monetary policy stance for some time. Second, it would judge the timing of an exit from the quantitative easing policy based on the three conditions in its commitment. And third, it would respond to changes in economic activity and prices in a timely and flexible manner. A different member said that, in the Bank's communication with the public, it was important to offer a lucid explanation of, for example, its assessment of economic activity and prices, and the Bank should make efforts to avoid causing speculation about the future conduct of monetary policy.

IV. Remarks by Government Representatives

The representative from the Ministry of Finance made the following remarks.

(1) Japan's economy was recovering at a moderate pace, while some signs were seen of coming out of a weak situation. However, deflation persisted. In assessing the economic situation, it was important to continue to closely monitor developments in inventory adjustments in the information and communications technology sector and the effects on the economy of developments in crude oil prices, which continued to rise substantially.
(2) Ensuring the sustainability of the economic recovery led by private demand and overcoming deflation remained important policy tasks. Therefore, the government would like the Bank to maintain the current policy and to continue to explain to market participants and the public that the Bank's stance of firmly maintaining the current quantitative easing policy remained unchanged.

The representative from the Cabinet Office made the following remarks.

(1) Japan's economy was recovering at a moderate pace, while some signs were seen of coming out of a weak situation. However, on the financial front the year-on-year growth rate of the money stock (M2+CDs) remained at the 1.0-2.0 percent level, and taking into account the overall price situation, deflation persisted.
(2) On June 21, 2005, the Cabinet decided the text of "Basic Policies for Economic and Fiscal Management and Structural Reform 2005." The government, keeping in mind its expectation of a nominal economic growth rate of 2 percent or higher in and after fiscal 2006, would accelerate and expand structural reforms focusing on expansion of private demand and employment and ensure that deflation was overcome, at the same time realizing both economic vitalization and budget consolidation.
(3) While the economy was recovering gradually, it was essential that the money stock increase in the end in overcoming deflation. The government therefore hoped that the Bank would implement effective monetary policy that would be consistent with the government's policy efforts to overcome deflation and with its outlook for the economy, while giving due consideration to market developments and expectations.

V. Votes

Based on the above discussions, the majority of members agreed that it was appropriate to maintain the current guideline, including the proviso, for money market operations with the target for the outstanding balance of current accounts at the Bank at around 30 to 35 trillion yen.

One member, however, said that the member would like to propose that the Bank should lower the target for the outstanding balance of current accounts at the Bank from "around 30 to 35 trillion yen" to "around 27 to 32 trillion yen." A different member said that the member would like to propose that the Bank should lower the target for the outstanding balance of current accounts at the Bank from "around 30 to 35 trillion yen" to "around 25 to 30 trillion yen."

As a result, the following proposals were submitted and put to the vote.

Mr. T. Fukuma proposed the following guideline for money market operations for the intermeeting period ahead:

The Bank of Japan will conduct money market operations, aiming at the outstanding balance of current accounts held at the Bank at around 27 to 32 trillion yen.

Should there be a risk of financial market instability, such as a surge in liquidity demand, the Bank will provide more liquidity irrespective of the above target.

The proposal was defeated by majority vote.

Votes for the proposal: Mr. T. Fukuma.

Votes against the proposal: Mr. T. Fukui, Mr. T. Muto, Mr. K. Iwata, Ms. M. Suda, Mr. S. Nakahara, Mr. H. Haru, Mr. A. Mizuno, and Mr. K. G. Nishimura.

Mr. A. Mizuno proposed the following guideline for money market operations for the intermeeting period ahead:

The Bank of Japan will conduct money market operations, aiming at the outstanding balance of current accounts held at the Bank at around 25 to 30 trillion yen.

The proposal was defeated by majority vote.

Votes for the proposal: Mr. A. Mizuno.

Votes against the proposal: Mr. T. Fukui, Mr. T. Muto, Mr. K. Iwata, Ms. M. Suda, Mr. S. Nakahara, Mr. H. Haru, Mr. T. Fukuma, and Mr. K. G. Nishimura.

To reflect the majority view, the chairman formulated the following proposal.

The Chairman's Policy Proposal on the Guideline for Market Operations:

The guideline for money market operations in the intermeeting period ahead will be as follows, and will be made public by the attached statement (see Attachment).

The Bank of Japan will conduct money market operations, aiming at the outstanding balance of current accounts held at the Bank at around 30 to 35 trillion yen.

Should there be a risk of financial market instability, such as a surge in liquidity demand, the Bank will provide more liquidity irrespective of the above target. When it is judged that liquidity demand is exceptionally weak considering such factors as responses of financial institutions to the Bank's funds-supplying operations, there may be cases where the balance of current accounts falls short of the target.

Votes for the proposal: Mr. T. Fukui, Mr. T. Muto, Mr. K. Iwata, Ms. M. Suda, Mr. S. Nakahara, Mr. H. Haru, and Mr. K. G. Nishimura.

Votes against the proposal: Mr. T. Fukuma and Mr. A. Mizuno.

Mr. T. Fukuma dissented from the above proposal for the following reasons. First, liquidity demand stemming from concern about financial system stability, which had been a significant factor in decisions to raise the target range for the outstanding balance of current accounts, was declining. Second, there was a possibility that maintaining a huge outstanding balance of current accounts at the Bank would hinder the process of restoring the proper functioning of the market and cause an erosion of financial market discipline, thereby increasing interest rate risk in the future. And third, it was possible to support the ongoing economic recovery and thereby the overcoming of deflation, by maintaining the zero interest rate environment based on the Bank's commitment in terms of policy duration.

Mr. A. Mizuno dissented from the proposal for the following reasons. First, liquidity demand among financial institutions was declining markedly. Second, it was already fully understood in the markets that lowering the target range did not indicate a change in the current framework of the quantitative easing policy. And third, if the Bank did not start normalizing its conduct of monetary policy at an early stage, including shortening the maturities of funds-supplying operations, interest rate risk might increase in the future.

VI. Discussion on the Bank's View of Recent Economic and Financial Developments

Members discussed "The Bank's View" in the Monthly Report of Recent Economic and Financial Developments (consisting of "The Bank's View" and "The Background"), and put it to the vote.

The Policy Board decided, by unanimous vote, the text of "The Bank's View." It was confirmed that "The Bank's View" would be published on July 13, 2005 and the whole report on July 14, 2005.⁶

6The English version of the whole report was published on July 15, 2005.

VII. Approval of the Minutes of the Monetary Policy Meeting

The Policy Board approved unanimously the minutes of the Monetary Policy Meeting of June 14 and 15, 2005 for release on July 19, 2005.

Attachment
July 13, 2005
Bank of Japan

At the Monetary Policy Meeting held today, the Bank of Japan decided, by majority vote, to set the following guideline for money market operations for the intermeeting period: