The decision to resort to such a measure reflects the acute concern of the Bank over the prolonged weakness of the Japanese economy.
In the Outlook for Economic Activity and Prices (hereafter the Outlook Report) released on April 30, the Bank stated at the opening that: (1) the presence of emerging and commodity exporting economies in the global economy is growing; (2) in advanced economies, the outstanding amount of public debt has risen to unprecedented levels; (3) discussions have proceeded regarding a review of financial regulation and supervision; and (4) Japan – where domestic demand is expected to decline against the backdrop of an aging and shrinking population – faces the critical challenge of raising real economic growth and productivity.