Despite some instability observed in the JGB market at the onset, the intended effects of QQE seem to have begun to materialize on the whole, with favorable developments spreading to economic activity and financial markets. Meanwhile, financial conditions remain accommodative.
And with BSP’s policy rates now at record low levels, average interest rates charged by banks to their customers have also dropped to single digit levels. This has benefitted consumers in terms of gaining access to more affordable credit while business is able to expand and create new jobs with lower financing costs.