Second, as another means of lowering the observed real interest rates, the inflation-overshooting commitment, under which the Bank works on people's expectations to increase inflation expectations, is also important.
The Bank aims to push up inflation expectations and further strengthen the effects of monetary easing by making a strong commitment to expanding the monetary base until the year-on-year rate of increase in the observed CPI exceeds 2 percent and stays above that level in a stable manner. 6  B.