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What is Quantitative and Qualitative Monetary Easing with Yield Curve Control?

At the Monetary Policy Meeting held on September 20 and 21, 2016, the Bank decided to introduce a new policy framework of Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control by strengthening the two previous policy frameworks of QQE and QQE with a Negative Interest Rate. The new policy framework consists of two major components: the first is "yield curve control" in which the Bank controls short-term and long-term interest rates through market operations; and the second is an "inflation-overshooting commitment" in which the Bank commits itself to expanding the monetary base until the year-on-year rate of increase in the observed consumer price index exceeds the price stability target of 2 percent and stays above the target in a stable manner.

For more information, see "Price Stability Target" of 2 Percent and "Quantitative and Qualitative Monetary Easing with Yield Curve Control."