Nevertheless, if such an increase in bank lending promotes real economic activity and transactions in the asset markets, some positive impact can be expected on general prices through an increase in asset prices. In particular, once upward momentum starts accumulating in the economy, the effects of the policy initiative are likely to be more pronounced.
In addition, if private-sector lending promotes cross-border capital expenditures or mergers and acquisitions by firms and banks, this will indirectly induce depreciation of the yen. At any rate, I would like to emphasize the importance of exerting indirect influence on the foreign exchange markets and asset markets mainly by facilitating a further decline in interest rates.