However, in spite of the general perception that monetary policy should be conducted so as to avert deflation, a central bank cannot lower interest rates below the zero lower bound.

There is always the potential for a central bank to engage in discretionary monetary policy and to break the one-to-one link between changes in foreign reserves and changes in the money supply.

Monetary policy is not a panacea.

There was speculation more members would vote for a shift in monetary policy. The bank decided to keep policy with a 7-2 majority and that will make people feel comfortable purchasing bonds.

Domestic inflation reflects domestic monetary policy.

It was determined at today's meeting that we cannot say that core consumer prices have stabilized above zero. The bank has not decided when to shift its policy.