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• There are limits to what BOJ can do in the sense it cannot underwrite debt due to legal constraints
• Don't share view that monetary policy is reaching its limits
• Even within current framework there is ample room for further easing
• First issue to analyze is what factors have hampered achievement of price target
• What we should bear in mind when conducting monetary policy is not its limit but comparison between its benefits and costs
• Negative rates have had impact on mkt liquidity, banks' profits, so need to assess this policy
• Given we have been implementing large-scale monetary easing, any additional easing entails costs
• We should not hesitate to go ahead with monetary easing as long as it's necessary for Japan's economy as a whole
• A reduction in level of monetary policy accommodation will not be considered in comprehensive review
• Balance between benefits and costs of monetary easing can change depending on situation
• Monetary policy should be conducted in a flexible manner
• Comprehensive review is conducted with aim of achieving 2 pct price target at earliest possible time
• There maybe a situation where drastic measures are warranted even though they could entail costs
• BOJ should always prepare policy options to address situations where drastic measures are warranted
• Corporate profits are expected to decrease slightly this fiscal year but remain high
• BOJ's September comprehensive review won't lead to discussions that could lead to tapering of monetary easing
• Employment and incomes have improved significantly
• Japan is no longer in deflation
• Negative rate policy so far seems to have succeeded in lowering funding costs of firms, households
• It is unquestionable that BOJ's QQE with negative rates have contributed significantly to turnaround in economy
• Japan not in situation where financial intermediary functions are impaired from negative rate policy
• Potential impact on financial intermediation, banks' profits needs to be taken into account in assessing effectiveness of negative rates
• Impact of negative rates on financial intermediation can vary depending on duration of this policy
• Substantial oil price declines, weakness in private consumption and slowdown in emerging economies had negative impact on achieving price target
• For the time being observed inflation is unlikely to accelrate

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