Turning to prices, upside risks have decreased compared with the past, and there is a possibility that the inflation rate will decline further if downside risks to economic activity materialize or commodity prices fall further. Based on these assessments, the Bank, at the Monetary Policy Meeting held on October 31, reduced the policy interest rate by 20 basis points to 0.3 percent.
Courage also involves banks having deliberate conversations with their stakeholders – the owners of the equity – that past expected risk-adjusted returns may not be achievable if they wish to be ‘sustainably successful’, that is, over the medium- to long-term. 9  Even with all of this in place there will still be a need for prudential regulation.