It should be noted, however, that while the rise in U.S. long-term interest rates has actually caused interest rates in Germany and the United Kingdom to follow suit, interest rates in Japan have recently been more or less flat at a low level.
This is evidence that the Bank’s aggressive monetary easing has been working strongly to contain the upward pressure on Japan’s long-term interest rates. Reflecting such extremely accommodative financial conditions in Japan, the yen has been depreciating, albeit with some fluctuations, and stock prices have been trending upward.