That includes examining the recent developments in wages as well as the core CPI, an indicator that the policy board presents in its assessments. B.  QQE and long-term interest rate  I will now talk about the effects of the price stability target on financial markets.
Under the QQE, the Bank puts strong downward pressure on nominal long-term interest rates through the massive purchases of JGBs. It also tries to raise people’s inflation expectations via the accumulation of the monetary base. The combination of the two will lower real long-term interest rates. That is an unprecedented challenge.