BoJ’s further easing, if necessary, will be qualitative

There is an argument that quantitative expansion via a significant increase in JGB purchases would be difficult, and if additional easing is required in 2015 it would likely emphasize such qualitative easing as purchase of ETFs and other risk assets and/or extending the residual maturities of the JGBs it buys.

This also means the BoJ would probably first look at the way to maintain the QQE framework through asset mix changes should the JGB purchase operation become difficult to continue at the current pace.