Stock prices have increased substantially and the appreciation of the yen was corrected in the foreign exchange markets. Lending, including that to small and medium-sized enterprises (SMEs), has been increasing moderately, at a pace of 2.5–3.0 percent on a year-on-year basis recently. In addition to the decline in real interest rates, such developments have made financial conditions even more accommodative.
Economic activity and prices under QQE With QQE producing effects, a virtuous cycle from income to spending has been operating in both the corporate and household sectors, and the economy has seen a significant turnaround. In the corporate sector, profits have improved to their highest level historically and fixed investment has been on a moderate increasing trend (Chart 3).