Thomson Financial News - The tightening lending stance by financial institutions can easily undo the impact of the rate cuts, while the reverse wealth impact, stemming from falling share prices and declining home prices, is likely to drag consumer spending and corporate investments. But when it comes to monetary policy decisions, unless the credit crunch actually threatens the banking system in Japan, the BoJ is not likely to follow the Fed's suit. What the BoJ can do is to watch the situation carefully.