As mentioned earlier, the Bank will pursue monetary easing aggressively with the aim of achieving the “price stability target.” In doing so, it is important to steadily ensure the market credibility of fiscal management. The Bank currently holds a large amount of government bonds and will still pursue large-scale government bond purchases.
While Japan’s fiscal conditions are in a severe state, compared with other countries, yields on government bonds  6  BIS central bankers’ speeches  have been at historic low levels. In our view, such situation suggests that market credibility of fiscal management has been ensured.