The third measure is active purchases of exchange-traded funds (ETFs) and Japan real estate investment trusts (J-REITs). The aim is to prevent firms' and households' sentiment from deteriorating through volatility in financial markets, thereby supporting positive economic activity. The Bank assesses that these three measures have been functioning effectively. Specifically, tension in financial markets has eased, although they are still nervous.
To try to maintain that balance, between demand and supply in the economy, is essentially the task of monetary policy and the aim the central bank is pursuing when it sets interest rates. If it succeeds, inflation will be kept low and the economy can continue to grow at a steady and sustainable rate on a continuing and lasting basis.