In the event that the price stability target cannot be achieved through around spring 2020, which is the time frame given in the current forward guidance, it may need to be extended. In my opinion, it is not favorable for the Bank to make such changes repeatedly, as there is concern that public confidence regarding monetary policy could deteriorate.
I consider it appropriate for the Bank to revise the forward guidance for the policy rates to relate it to the price stability target. 4 I would argue that the mindset of firms and households in Japan was formed under the prolonged deflationary environment after the mid-1990s, such that it has become rational to assume that economic activity is sustainable without inflation.