However, since the year-on-year rate of increase in the CPI is expected to be around 1–1/4 percent for some time, close attention still needs to be paid to whether medium- to long-term inflation expectations will rise as expected.
In addition, it is important that a virtuous cycle between price rises and wage increases operates effectively in order for prices to rise in a sustainable fashion. Discussions on efforts to raise productivity and on price developments in the upcoming wage negotiations will therefore be monitored closely. II. Conduct of monetary policy  A.  Quantitative and qualitative monetary easing (QQE)  1.