Taking into account the newly identified supply-side factor, that is, constraints on inflation resulting from the rise in labor productivity, there is a reason to believe that it is not appropriate to be fixated on the fact that the price stability target has not been achieved nor to attempt to resolve this through additional monetary easing.
In fact, such action also carries with it the risk of a build-up of financial imbalances. 13  The Bank's monetary policy itself does not have any direct impact in terms of altering the economic structure; however, it can support the structural changes in Japan's economy by creating accommodative financial conditions.