In response, the Bank of Japan decided to guide the short-term interest rate, specifically the uncollateralized overnight call rate, down to virtually zero by flexibly providing ample funds to the money market. Then, in April 1999, the Bank decided to continue the zero interest rate policy until such time it could be ascertained deflationary concern had been dispelled.
Chart 1 shows the development of market interest rates since April 1999. To the best of my knowledge, I cannot think of any precedents in financial history, either at home or abroad, where a central bank has guided short-term interest rates down to virtually zero and maintained that level for a long period.