While pursuing this policy, the real economy, financial markets, and people’s sentiment and expectations have been improving, and thus the QQE has been steadily exerting its intended effects.
These relate to external demand, which is supported by a strong world economy, as well as to domestic demand, which is supported by both continued favourable financing conditions and strong employment growth. Today’s decisions should contribute to maintaining these overall prospects by preventing the emergence of expectations for inflation in the medium term.