The real GDP growth rate (seasonally adjusted; the annualized growth rate compared with the previous quarter) was high at 5.5 percent in the January-March 2012 quarter and maintained steady growth in the April-June quarter at 1.4 percent.
If normalization of QQE – such as the measure to reduce the pace of the Bank’s JGB purchases – is postponed in fear of a negative market reaction, this could further increase the potential risk of financial markets becoming unstable, which consequently could ruin the positive results of QQE gained so far.