In a situation where the price stability target of 2 percent is achieved in a stable manner, people will share the view that annual inflation will be around 2 percent, and such view will be a key determinant of prices of goods and services, as well as wages.
With the aim of dramatically changing the deflationary mindset that had been entrenched among people and raising inflation expectations to 2 percent, the Bank -- under QQE introduced in April 2013 -- has strongly and clearly committed itself to achieving the price stability target and conducted large-scale monetary expansion to underpin this commitment.