A case in point is the use of cointegration models, where the deviation from an estimated long-run equilibrium level can be a powerful factor affecting short-run forecasts of changes, as the model wants to move the dependent variable towards the supposed long-run equilibrium.
Given such developments in economic activity and prices, the Bank will persistently continue with the current powerful monetary easing centered on yield curve control, aiming to firmly support Japan's economy and thereby achieve the price stability target of 2 percent in a sustainable and stable manner. Thank you. 2