On the other hand, if the policy focus is strictly on stabilizing the banking sector without giving due consideration to consumer protection, both consumer and investor confidence will remain weak and we will risk repeating the mistakes of the past.
First, the Bank conducts monetary policy based on the principle that the policy shall be aimed at “achieving price stability, thereby contributing to the sound development of the national economy.” In line with this principle, “price stability” is defined as “a state where various economic entities including households and firms may make decisions regarding such economic activities as consumption and investments without being concerned about the fluctuations in the general price level.” It could be said that, by realizing such price stability, the Bank is responsible for creating in the medium to long term an environment in which the economy can achieve sustainable growth so that its growth potential will be realized to the maximum extent.