Since interest rates are already at extremely low levels, room for a further decline by monetary easing is naturally limited. However, that does not suggest that monetary easing has reached its limit. Because, for firms, the level of funding rates matters in its relation to the rate of return.
Even if a firm can raise funds at low costs, power to stimulate firm’s business will be limited when there are few promising investment projects. By contrast, amid continued low interest rates, if the economy recovers and projects with high profitability increase, the usability of funds obtained at low costs will considerably improve.