In the long run, it can be expected that, on the back of a rise in long-term interest rates, the negative spread will be resolved with a gradual increase in the Bank's interest income on JGBs, and the environment for its profits will improve, making it possible for the Bank to restore its capital.
Although comprehensive monetary easing was introduced last fall, stock prices and J-REITs have not risen, partly due to a deterioration in the external environment. However, some market participants have observed that the Bank’s purchases of ETFs and J-REITs helped markets to support some confidence right after the earthquake and also during the period of high uncertainty since this summer.