The purpose of this operation is to encourage a decline in longer-term market interest rates and a reduction in various risk premiums so that financial conditions surrounding the ultimate borrowers of funds, such as firms and households, will become more accommodative.
In the process of enhancing monetary easing, the total size of the Program had been increased repeatedly, from the initial 35 trillion yen in October 2010 to 55 trillion yen, and the Bank made a decision to further increase it to 65 trillion yen by earmarking another 10 trillion yen for the purchase of JGBs at the latest Monetary Policy Meeting.