Subsequently, as financial markets restored their functioning, the adverse effects stemming from those measures, such as the shrinkage of the market scale and distortion in price formation in the markets, were seen. Therefore, the Bank decided to wind up these temporary measures and to consistently maintain accommodative monetary conditions by taking the most appropriate funds-supplying measures according to the changes in the market situation.
It is not correct to gauge the winding up of those measures as the holding back of monetary easing. The Bank recognizes that Japan’s economy is faced with a critical challenge of overcoming deflation and returning to a sustainable growth path with price stability. To this end, the Bank will continue to consistently make contributions as central bank.