Section IV will review QQE progress to date through an overview of current price performance and its outlook, followed by an overview of economic activity. II. Why is forward guidance so important for Japan? I want to first address the question of why forward guidance is so important for Japan.
As you know, the Bank is attempting to overcome the mild deflation that has lasted in Japan for nearly 15 years since 1998 and to achieve the 2 percent price stability target adopted in January 2013. The rate of price changes since 1998 is averaged at minus 0.3 percent. Before proceeding with my speech, let me pause here for a moment.