The main objectives of the QQE have been to dispel a view that took root among people over a long period of deflation that prices would not rise – in other words, a deflationary mindset – and to create a situation in which households and firms behave on the assumption that prices would moderately increase.
Specifically, in terms of the policy transmission mechanism, we intend to raise inflation expectations through a strong and clear commitment to achieve the price stability target of 2 percent, and at the same time to exert downward pressure across the entire yield curve through massive purchases of government bonds.