As the economy is expected to continue to recover steadily with a balance being maintained between domestic and external demand and between the corporate and household sectors, a positive trend in the year-on-year rate of change in consumer prices is projected to be established, albeit with some fluctuations.
As I have explained, Japan's economy has achieved substantial improvement, in terms of both economic activity and prices, and this implies that the Bank should respond to the improvement by changing its conduct of monetary policy. III. Effects of the quantitative easing policy The Bank displayed its resolve in continuing the quantitative easing policy for five years after introducing it in March 2001.