•  The three key instruments we have identified for conducting monetary policy at the effective lower bound include: conditional statements about the future path of policy interest rates; quantitative easing, which involves the creation of central bank reserves to purchase financial assets; and credit easing, which includes outright purchases of private sector assets.
•  If required, these instruments could be used separately or in tandem to improve financial conditions in order to support aggregate demand and ultimately achieve the inflation target. •  As you are aware, the Bank deployed the first instrument on 21 April.