The Bank will continue to support the business community by ensuring an accommodative monetary environment and providing long-term funds through financial institutions. The Bank recognizes that Japan’s economy faces the critical challenge of overcoming deflation as early as possible and achieving sustainable growth with price stability.
Models used to assess risks – whether they are formal models, simple heuristics, or rules of thumb – are ultimately based on past experiences. The likelihood that interest rates, credit risk, and volatility will rise in the future is underestimated by most models.