Specifically, in the guideline for market operations — which is decided at and released after every MPM — the Bank will set two interest rate levels: the short-term policy interest rate to be applied to current accounts held by financial institutions at the Bank, and the target level of yields on 10-year Japanese government bonds (JGBs).
It will conduct JGB purchases aiming to achieve the target level of the long-term interest rate specified by the guideline, while indicating the approximate amount of JGBs to be purchased. The second is an “inflation-overshooting commitment.” In order to achieve the price stability target of 2 percent, it is necessary to drastically convert the deflationary mindset among people and raise inflation expectations.