In Japan, in the midst of prolonged deflation since the latter half of the 1990s, people’s inflation expectations declined and deflationary expectations were firmly embedded in society. One of the striking features of the QQE is that it sets the overcoming of such deflationary expectations by working directly on people’s expectations, or the lifting of their inflation expectations, at the center of policy effects.
4  BIS central bankers’ speeches  C.  Current assessment  It has been a year and two months since the Bank introduced the QQE. So far, the QQE has been exerting its intended effects.