In order to preempt the manifestation of the risk that conversion of the deflationary mindset might be delayed, resulting from such uncertainties about overseas economies and financial markets, the Bank decided to introduce “Quantitative and Qualitative Monetary Easing (QQE) with a Negative Interest Rate” at the MPM in January.
Thereafter, global financial markets gradually regained some calmness and a situation where market turbulence would lead to the substantial slowdown in the global economy was avoided, partly reflecting additional monetary easing by the European Central Bank (ECB) and others and also strong determination shown by the G20 to use all policy tools – monetary, fiscal, and structural – to achieve sustainable growth under price stability.