In order to exit such an environment, it is vital to dispel the deflationary expectations embedded in the people. To address the challenge of overcoming deflation, the Bank introduced the QQE in April.
The QQE has two pillars: first, it commits to achieving the price stability target of 2 percent in terms of the year-on-year rate of change in the CPI at the earliest possible time, with a time horizon of about two years; second, it represents pursuit of a new phase of bold monetary easing in order to underpin such commitment.