This in turn could worsen fiscal conditions and substantially constrain the effects of monetary easing. As specified in the joint statement by the government and the Bank released in January 2013, the implementation of fiscal consolidation measures is an important prerequisite for the success of QQE and is essential for Japan’s economy in overcoming deflation and achieving sustainable growth.
D.  Use of a wide range of policy measures  1. Loan support program  In addition to powerful monetary easing through QQE, the Bank has established a fundprovisioning measure called the Loan Support Program to support initiatives to make the best use of accommodative financial conditions within efforts to increase bank lending and strengthen the growth potential of Japan’s economy.