the guideline for market operations, in which it sets the short - term policy interest rate at minus 0. 1 percent and the target level of 10 - year jgb yields at around zero percent. japan ’ s economy has continued on a moderate expanding trend and already is no longer in deflation in the sense of a sustained decline in prices. however, it is likely to still take time to achieve the price stability target of 2 percent. in addition, there remain high uncertainties regarding the outlook for economic activity and prices including developments in overseas economies. based on this recognition, the bank considers it important to make clearer its policy stance to persistently continue with powerful monetary easing toward achieving the price stability target. thus, the bank decided last month to clarify forward guidance for policy rates introduced in july 2018 and maintain the current extremely low levels of short - and long - term interest rates for an extended period of time, at least through around spring 2020, taking into account 1 / 2 bis central bankers'speeches uncertainties regarding economic activity and prices including developments in overseas economies and the effects of the scheduled consumption tax hike. the bank also decided to take such measures as the expansion of eligible collateral for the bank ’ s provision of credit, thereby contributing to smooth fund - provisioning as well as to securing market functioning. these measures likely will strengthen public confidence in continuing with powerful monetary easing, thereby further ensuring the achievement of the price stability target and leading to stability in financial markets. the bank will continue to examine the risks considered most relevant to the conduct of monetary policy and conduct its policy in an appropriate manner, taking account of developments in economic activity and prices as well as financial conditions. thank you. 2 / 2 bis central bankers'speeches

, the bsp will continue to work actively with other government agencies and the private sector for the completion of critical market infrastructure to enhance system integrity and overall market confidence. we will continue to push for the passage of key legislations intended to accelerate the development of the domestic capital market. in particular, we shall push for the implementation of a centralized credit information bureau to improve the availability and the quality of financial information to investors, expand private sector access to credit, and minimize exposure to risks of financial intermediaries. on the basis of these policy directions, and looking ahead, the outlook for the monetary, external and banking sectors continues to be favorable. average inflation fell below the target of 4 - 5 percent in 2007. it is expected to settle within the target in 2008 of 4 percent ± 1 percentage point. the external payments position is expected to remain a source of strength for the economy over the near term. dollar inflows from remittances and foreign investments are expected to remain robust and will continue to provide support for the peso. this should enable us to further build up our cushion of international reserves. on the banking system, we expect to see a further expansion of bank assets and capitalization, as well as a further improvement in bank asset quality. these are the broad strokes of the economic picture of the year just past and for 2008. i am now ready for a discussion of specific questions and issues of interest to you.