The Bank decided to synthesize the two purchasing methods of JGBs and to express the target of JGB purchases as a net increase in its JGB holdings, instead of the total size of JGB purchases. We believe that these changes facilitate understanding of the Bank’s intention with regard to monetary easing in a straightforward manner.
However, there is a problem of time inconsistency with this commitment, because when an increase in interest rates does become appropriate, the commitment may be compromised in the end since it is appropriate to do so on an ex post basis.