Furthermore, the Bank more specifically expressed that it set a goal of “1 percent for the time being” and that it would aim to achieve this goal in conducting monetary policy. I will elaborate upon why we chose “1 percent” later in my talk. Pursuit of powerful monetary easing The second point involves the specifics of the monetary easing measures.
Given that the overnight call rate, or the policy rate, is already virtually zero, generating easing effects in terms of monetary policy calls for a new approach. This is where the Bank’s comprehensive monetary easing measures implemented in autumn 2010 come in.