In sum, in proceeding with “QQE with a Negative Interest Rate,” the Bank should make an appropriate policy judgment by taking account not only of its powerful impact on the yield curve but also its impact on the financial intermediation in a broad sense.
Needless to say, there is still ample space for further cuts in the negative interest rate and for an increase in size in the “quantity” dimension. The Bank has a broad range of policy options. It will continue to choose the most appropriate policy actions among those options, depending on the situations for economic activity, prices, and financial conditions.