The commitment by the Bank, together with market participants' expectations for consumer prices, has led them to expect that short-term interest rates will remain at zero percent for some time, and as a result longer-term interest rates have remained stable at low levels.
The quantitative easing policy has thus been contributing greatly to the recovery in Japan's economy through the Bank's provision of ample liquidity and its policy commitment. The effects of the quantitative easing policy have been changing with developments in economic activity and prices as well as the state of the financial system since its introduction.