Once the effects of the policy start to materialize and the actual rate of inflation stays stably around the price stability target, inflation expectations will be anchored. The question is: What do actual inflation expectations look like?
While it is difficult to gauge how the public formulates inflation expectations, it appears that they are gradually picking up as the QQE progresses, as evidenced by inflation expectations derived from the yield spread between fixed-rate coupon-bearing JGBs and inflation-index JGBs, or from the surveys collected from the bond market participants in securities and institutional investment companies.