While the considerations behind regulating interest rate markets are different form exchange rate markets, the objective still remains systemic stability. Large sovereign borrowings impact the yield curve through the expectation channel. Apart from direct balance sheet effects on the financial sector, interest rate volatility has a critical bearing on sovereign balance sheet which could translate onto financial sector balance sheets.
It decided that it would continue with the QQE, aiming to achieve the price stability target of 2 percent in terms of the year-on-year rate of change in the consumer price index (CPI), as long as it is necessary for maintaining that target in a stable manner. In my lecture today, I would like to answer the following three questions.