Inflation-Overshooting Commitment  The "makeup strategy," which this commitment is implementing, is appropriate. Chart 12  Assessment for Further Effective and Sustainable Monetary Easing (cont'd) Effects on the Functioning of the JGB Market  With the range of fluctuations in interest rates having narrowed, the functioning of the JGB market has decreased.
 Yield fluctuations within a certain range have positive effects on the functioning of the JGB market without impairing the effects of monetary easing. Effects on the Functioning of Financial Intermediation  Financial institutions' core profitability has declined due to prolonged low interest rates and structural factors.  It is necessary to pay attention to both overheating and pullback risks to the financial system.