In addition, QQE is expected to give rise to a virtuous cycle in which closing the output gap will lead to a rise in observed inflation, which in turn will further increase inflation expectations toward the price stability target.
Though it was expected that the implementation of new model would increase credit impairment in the banks, the central bank’s assessment of the impact, revealed that increases in loan loss impairment were largely contained within the regulatory credit risk reserve. Page | 5  We have started work on addressing the crisis that bedeviled the industry focusing on enhancing customer confidence in the system.