After the introduction of QQE, interest rates fluctuated due to these two contradictory factors, and the volatility in the JGB market rose as a result. Such high volatility, if it is prolonged, tends to prompt market participants to sell bonds for the purpose of risk management, and heavy bond sales could cause an unnecessary rise in interest rates.
Given the heightened volatility in the JGB market, at the May MPM the Policy Board members discussed measures to stabilize long-term interest rates, and confirmed that for JGB purchases it was important for the Bank to conduct operations flexibly.