I can assure you that we will act quickly and decisively on any indications of emerging second-round effects and of a dis-anchoring of inflation expectations from levels consistent with price stability. The firm anchoring of inflation expectations remains of the essence. 7.
Meanwhile, in the foreign exchange market, the yen’s exchange rate against the U.S. dollar has been depreciating since autumn 2012, when it was around 80 yen to the dollar, and has recently been around 100 yen (Chart 6). Monetary easing aims at overcoming deflation and by no means intends to maneuver the exchange rate. Nonetheless, monetary easing will exert pressure toward depreciation ceteris paribus.