Global financial markets had been volatile since the turn of the year, and there was an increasing risk that an improvement in the business confidence of Japanese firms and conversion of the deflationary mindset might be delayed and that the underlying trend in inflation might be negatively affected.
“QQE with a Negative Interest Rate” was introduced in order to preempt the manifestation of this risk and to maintain momentum toward achieving the price stability target of 2 percent. “QQE with a Negative Interest Rate” continues with the QQE framework employed so far but enhances monetary easing effects by adding the new dimension of a negative interest rate.