	japan carefully considering money policy sumita bank of japan governor satoshi sumita said the central bank will carefully consider its monetary policy in light of the recent sharp fall of the dollar asked if the bank of japan will consider a further cut in its discount rate he said he now thinks the bank will have to carefully consider its future money policy he told a lower house budget committee in parliament that credit conditions have been eased by the five discount rate cuts by japan since the beginning of last year japan must now be especially careful about a flare up in inflation with money supply growth accelerating he said sumita said the central bank would continue to make a judgement on monetary policies while watching consumer prices exchange rates and economic and financial conditions both in and outside japan asked if the september plaza agreement was a failure because the dollar had fallen too far sumita said he still thought the pact was a good one in the sense that it had corrected the overvaluation of the dollar but the plaza accord did not set any target for the dollar s fall he said the dollar s steep fall stems from the market s belief that the trade imbalance will continue to expand he said reuter 
