QQE with Yield Curve Control is a monetary policy framework that was introduced in September 2016 (Chart 3). This framework consists of two major components: yield curve control and an inflation-overshooting commitment. Yield curve control is a framework for market operations that targets all interest rates at the short and long ends; in other words, the yield curve.
The Bank aims to control short- and long-term interest rates to the appropriate levels while taking into consideration both the positive and side effects of monetary easing. The inflation-overshooting commitment is to continue expanding the monetary base until the year-on-year rate of increase in the observed CPI exceeds 2 percent and stays above the target in a stable manner.