The second pillar is to engage in actions that embody the commitment specified in the first pillar. As exemplified by the phrase “quantitative and qualitative monetary easing”, these actions are to increase the “quantity” of the Bank’s balance sheet and change the “quality” of its asset purchases.
An increase in “quantity” means increasing the monetary base at an annual pace of about 60–70 trillion yen, mainly by massively purchasing Japanese government bonds (JGBs). A change in “quality” refers to purchasing assets with a higher risk profile. Among JGBs, the Bank has started purchasing those with longer remaining maturities.