This was the first policy change since March this year when we abandoned the quantitative easing policy and announced the "Introduction of a New Framework for the Conduct of Monetary Policy." This action demonstrates that the Bank has returned to pursuing a monetary policy in which it controls interest rates both in name and in deed.
Today, I would like to explain the background to the policy change and, by picking up on some key issues, discuss in detail the framework of interest rate control and how its effects feed through into the economy. I. The current state and outlook for the Japanese economy  A.