Since then, however, the global decline in stock prices and the appreciation of the yen have continued, triggered by pessimistic views on the U.S. economy and concern about the stability of the financial system in Europe. These developments have led to newspaper headlines claiming that the effects of the negative interest rate policy have been cancelled out. This is not an accurate assessment.
Since the introduction of “QQE with a Negative Interest Rate,” interest rates across the board have clearly declined. This is exactly what we intended. The decline in yen interest rates and the fact that further monetary easing is possible – all else being equal – have a positive impact on asset prices.