Looking at the developments following the February decision based on this consideration – in the form of effects on longer-term interest rates and people’s risk-taking appetite brought about by prospects, that is, valid expectations for future aggressive monetary policy conduct – the 2-year government bond yield has declined, the yen has depreciated, and stock prices have risen.
The depreciating trend of the yen and the rise in stock prices were already evident prior to the February decision, reflecting the mitigation of global risk aversion, improvement in the U.S. economy, and Japan’s trade deficit. The decision at the Monetary Policy Meeting in February also appears to have contributed to establishing the trend.