• Current interest rates are appropriate
• Yen rises haven’t had serious impact on business sentiment so far
• To closely watch fx moves, overseas economies
• BOJ policy not focused on fx rates alone
• To take appropriate action if needed
• Japan banks’ exposure to euro zone not so big
• European debt problem unlikely to have direct impact on Japan
• If European debt woes worsen, will have big impact on global economy
• Want to look at both merits and demerits of yen rise, take appropriate action if needed