Through this commitment, the Bank aims at increasing people's confidence in the achievement of the 2 percent price stability target. 2. Policy effects and side effects While monetary easing stimulates the economy, keeping interest rates low across the entire yield curve for a prolonged period could exert adverse effects on the functioning of the JGB market and profits of financial institutions.
Let me start with the basic concept of market neutrality. Central banks' actions affect society and the economy in many ways. The key principle in this regard is that the central bank should work on the macroeconomy as a whole while intervening as little as possible in the microeconomic allocation of resources.