Extending the policy response Extending our outright asset purchases towards other asset classes could be one option if we were to judge that the economy was in need of further stimulus. It is important though to constantly keep in mind our intention, our purpose in adopting further measures. Asset purchases are not an end in themselves. They are not a target of monetary policy.
They are an instrument of policy. To see this, let us conduct a thought experiment: faced with the circumstances we have now, how would we have reacted in normal times – that is, with positive policy rates and no impairments in transmission? In my view we would have lowered rates further by now.