Moreover, while long-term interest rates are often used as a barometer for economic activity, there have been instances where Japanese long-term interest rates have merely followed the rise in overseas long-term interest rates, including those of the United States.
If the program works as planned, it should help to restart activity in these key securitization markets and lead to lower borrowing rates and improved access in the markets for consumer and small business credit. This basic framework could also be expanded to accommodate higher volumes as well as additional classes of securities, as circumstances warrant.