Given these developments in economic activity and prices, the Bank deems it necessary to conduct monetary easing and thereby firmly support the economy and provide a favorable environment for firms to raise wages.
To this end, at the Monetary Policy Meeting held last week, the Bank decided to continue with large-scale monetary easing, in which it set the short-term policy interest rate at minus 0.1 percent and the target level of 10-year Japanese government bond (JGB) yields at around zero percent.