As I have consistently said, even during the period when stock prices fell temporarily, Japan’s economy is steadily improving, and financial markets – including stock prices – will reflect such fundamental movements in the real economy. Next is the developments in long-term interest rates (Chart 5).
BIS central bankers’ speeches  3  calibrate verbal guidance. It also makes it easier to illustrate how monetary policy interacts with the economy. 10 In practice, however, it does not appear that markets take systematic account of the guidance offered by a published path beyond the very near term. Overall research has not generally found that publishing a path leads to better outcomes.