While the quantitative definition of price stability was instrumental in establishing credibility in the first decade, its asymmetric formulation may have led to misperceptions in a low-inflation environment. Thus we made clear that our policy aim was fully symmetric,11 and it was symmetric around the level that we had established in 2003: below, but close to, 2%.
However, as I will explain later, the real economies of Japan as well as the United States and Europe have continued to recover steadily on the whole so far, and the outlook for corporate profits has remained firm. Therefore, developments in financial markets in the meantime may partly reflect market participants responding somewhat sensitively to heightening uncertainties regarding the outlook.