A key aim of the BoJ’s QQE programme is to lower real interest rates in a bid to encourage firms and households to borrow and spend more and thereby eliminate the spare capacity that underpins deflation. Unfortunately, credit growth has already started to moderate, and a range of indicators suggest it will slow further in the coming months. What's more, there are structural impediments to stronger loan demand. The upshot is that the central bank still has more work to do.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services