Yet the challenges that are facing us today are not only about dealing with the new risks (and opportunities) of financial innovation. After the intense, prolonged reform effort, we need to ensure that the new framework is effectively implemented, thereby providing regulatory certainty and stability so that the financial system can operate in support of economic growth.
“QQE with a Negative Interest Rate” was introduced in order to preempt the manifestation of this risk and to maintain momentum toward achieving the price stability target of 2 percent. “QQE with a Negative Interest Rate” continues with the QQE framework employed so far but enhances monetary easing effects by adding the new dimension of a negative interest rate.