The second issue is regarding “QQE with a Negative Interest Rate,” which was introduced more than half a year ago. Under the negative interest rate policy, various interest rates, including Japanese government bond (JGB) yields as well as rates for lending and corporate bonds, have declined substantially; thus, the policy already has exerted remarkable effects.
At the same time, however, it has had an impact on financial markets’ liquidity and financial institutions’ profits. The effects and impact of this policy also need to be assessed. The Bank will examine these issues in an objective manner, by carefully analyzing observed facts and checking them against the theories underpinning the Bank’s policy.