To further supplement these tools, the new policy adds an “interest rate” option to these two existing options, so that the Bank can now pursue additional monetary easing measures in terms of three dimensions: “quantity,” “quality,” and “a negative interest rate.” The new policy framework will provide significant reinforcement to complete our mission to overcome deflation.
Our monetary policy initiatives will also contribute to shoring up the potential growth rate. The Bank aims at providing accommodative financial conditions and dispelling people’s persistent deflationary mindset by pursuing “QQE with a Negative Interest Rate.” We believe it will contribute to creating a business environment that encourages firms to pursue more proactive investment strategies and make greater efforts to improve productivity.