Credit worthiness of firms and households should improve on account of higher net worth induced by asset price increases. Moreover, as bank funding cost should continue to decline, I expect to see a further easing of credit standards on loans to enterprises as was already noticeable in the latest ECB Bank Lending Survey. Our policy is indeed working according to plan.
For Japan's economy, which has emerged from a prolonged recession and is entering a new phase, the Bank believes that the new policy framework is the most suitable for enhancing transparency and conducting monetary policy appropriately.