s conduct of monetary policy next, i would like to explain the bank's conduct of monetary policy including the measures decided at the mpm held two days ago. the bank has been pursuing powerful monetary easing under the policy framework of " qqe with yield curve control, " aiming to achieve the price stability target of 2 percent ( chart 10 ). in order to achieve the price stability target at the earliest possible time, the bank set the target level of 10 - year japanese government bond ( jgb ) yields at around zero percent, and has purchased large amount of jgbs so that the yield curve would be formed in line with the target. by conducting this operation, short - and long - term interest rates have been stable at low levels and lending rates as well as issuance rates for corporate bonds - - to which certain spreads are added in both cases - - also have remained at extremely low levels. the amount outstanding of bank lending has been increasing firmly. thus, the current highly accommodative financial conditions, brought about by yield curve control, have largely contributed to an improvement in the output gap, stimulating firms'and households'spending activities. in addition, the bank has purchased exchange - traded funds ( etfs ) and japan real estate investment trusts ( j - reits ) with a view to exerting positive effects on economic activity and prices through lowering risk premia in the stock market. as i explained, following the discussion at the latest mpm, the bank released its economic projections, which show that it will take more time than expected to achieve the price stability target of 2 percent. however, the momentum toward 2 percent inflation has been maintained. accordingly, as for the conduct of monetary policy, the bank judged it appropriate to persistently continue with the current powerful monetary easing, thereby maintaining the output gap as long as possible within positive territory, in order to make the momentum sustainable. during the discussion, we thought it necessary to address two challenges. the first is to firmly maintain confidence among the public regarding the bank's current policy stance that aims at achieving the price stability target of 2 percent. the second is to strengthen the sustainability of the current powerful monetary easing so that the effects of monetary easing will not be reduced while taking care of such factors as the negative effects on financial markets, in a situation where monetary easing needs to be continued. in order to address these two challenges, the bank decided to newly implement measures to strengthen the framework of powerful monetary easing.

of a decrease. if the economy continues to move along the expected path, then at some point it will be appropriate to raise interest rates. this will be in the context of an improving economy and 10 / 11 bis central bankers'speeches stronger growth in household incomes. third, the board does not see a strong case for a near - term change in interest rates. there is a reasonable probability that the current setting of monetary policy will be maintained for a while yet. this reflects the fact that the expected progress on our goals for unemployment and inflation is likely to be gradual. the board's view is that it is appropriate to maintain the current setting of policy while this progress is made. thank you for listening. i look forward to your questions. 1 see the banking and finance oath website at < www. thebfo. org / home >. 2 the primary producers bank was wound up in 1931. the bank accounted for less than 0. 5 per cent of australian banks ’ deposits at the time, and the bank ’ s customers lost just 1. 25 per cent of their deposits. see fitz - gibbon b and m gizycki ( 2001 ), ‘ ahistory of last - resort lending and other support for troubled financial institutions in australia ’, rba research discussion paper no 2001 – 07. 11 / 11 bis central bankers'speeches