Changing people’s deflationary mindset and raising inflation expectations through its commitment to achieving the price stability target of 2 percent at the earliest possible time is by itself an aim of overcoming deflation, and at the same time the starting point of QQE’s effects. As I have explained, the perception of inflation by firms and households started to change markedly.
This is because the Bank presented a time frame of achieving the price stability target at the earliest possible time with a time horizon of about two years, and made a clear commitment to doing whatever is necessary to achieve that target. In reality, prices change due to various factors.