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(Reference) Monetary Policy under Quantitative and Qualitative Monetary Easing Introduced in 2013

日本語

In April 2013, the Bank of Japan introduced quantitative and qualitative monetary easing (QQE). With this, it decided to change the main operating target for money market operations from the uncollateralized overnight call rate to the monetary base, and to substantially increase the monetary base and the amounts outstanding of Japanese government bonds (JGBs) as well as exchange-traded funds (ETFs).

In January 2016, The Bank introduced QQE with a negative interest rate and decided to apply a negative interest rate of minus 0.1 percent to a part of current account balances held by financial institutions at the Bank.

In September 2016, based on Comprehensive Assessment [PDF 812KB] ,the Bank introduced QQE with yield curve control (YCC), and decided, for example, to control short-term and long-term interest rates through market operations.

In March 2024, the Bank judged that the price stability target of 2 percent being achieved in a sustainable and stable manner was now within sight. On this basis, the Bank considered the policy framework of QQE with YCC and the negative interest rate policy to have fulfilled their roles, and therefore decided to change the monetary policy framework to one in which it guides the short-term interest rate as a primary policy tool.

(Reference) Releases regarding Policy Effects