However, the NBS stands ready to respond promptly by all instruments on hand in case of the materialisation of any of the risks that would keep inflation above the upper bound of the target band for a prolonged period of time, because low and stable medium-term inflation, along with preserved financial system stability, is the key ingredient of faster and sustainable economic growth.
In such a situation, a central bank may be called into action as a “lender of last resort” by providing liquidity in order to maintain the stability in financial markets and the financial system, and such operations are expected to be effective at least in the short term.