After the introduction of QQE, inflation expectations increased significantly through around summer 2014 (Chart 8). This clearly shows that monetary policy is effective in raising inflation expectations.
Thereafter, however, with headwinds such as a significant decline in crude oil prices, weak demand following the consumption tax hike, and volatility in global financial markets reflecting the slowdown in emerging economies, inflation expectations resumed their decline from summer 2015 and have remained in a weakening phase.