The reason is that although the Bank continues to steadily implement the comprehensive monetary easing policy and remains firmly committed to pursuing powerful monetary easing, it is fundamentally difficult for interest rate policy to directly influence longterm interest rates, and the rise in overseas interest rates seems to be affecting Japanese long-term interest rates to some extent.10 The outlook for Japan’s economy I presented earlier – the scenario considered to be the most likely – is based on the assumption that financial markets will fully factor in the Bank’s monetary policy measures taken so far.
That is, I judge that, under the Bank’s monetary policy, Japan’s economy will likely continue to make steady progress toward overcoming deflation and returning to a sustainable growth path with price stability. 2.