With this commitment, the Bank aims to increase its credibility among the public that it will achieve the 2 percent price stability target by ruling out the possibility of a change in the direction of monetary policy at an early stage when achievement of the target comes in sight.
In my view, this monetary policy framework will lead to higher inflation, mainly through four transmission channels (Chart 6). The first is highly accommodative financial conditions  1  In addition to the two major components, the Bank conducts purchases of risky assets -- namely, exchange-traded funds (ETFs) and Japan real estate investment trusts (J-REITs) -- as part of monetary policy.