This is because, in a monetary union of sovereign member states with a single monetary policy and largely autonomous economic and fiscal policies, government bond purchases are not a monetary policy instrument like our policy rates, for instance.
However, subsequently, downside risks to the economy materialized in the form of, for example, greater adverse effects on Japan’s economic activity from the deceleration in overseas economies and the appreciation of the yen. Consequently, in the October 2011 Outlook Report, the Bank’s forecasts were revised slightly downward from those made in July 2011.