In conclusion, this shows that in the current circumstances, international comparisons of policy rates, if not done with the appropriate qualifications, provide limited information about the effective credit conditions in individual markets. Enhanced credit support In recent months policy actions have gone well beyond cuts in policy interest rates. They also include non-standard measures. These measures are not identical across currency areas.
They reflect the specific needs of the respective financial systems and transmission mechanisms. As you know, Japan has become known for an approach termed “quantitative easing” which entails, among other things, the expansion of the monetary base through outright purchases of government bonds.