It is undeniable that one of the most important factors behind this is that there was limited room for a reduction of real interest rates -- or for monetary easing -- in Japan, as inflation expectations stayed at low levels, or declined significantly, after the global financial crisis.
8  With these factors in mind, the Bank has been conducting monetary policy to achieve the price stability target of 2 percent, with a view to creating an environment where real interest rates can be lowered sufficiently and thereby the economy can be supported effectively even when adverse shocks hit the economy.