There is, nevertheless, a large amount of estimation uncertainty, and different model approaches lead to very different assessments with regard to the effectiveness of such purchases.6 At the same time, government bond purchases also have some inherent unintended side effects.
This favourable medium-term outlook for inflation is in the context of moderate growth in economic activity and a sound and  stable  financial  system. Therefore,  prospective  developments augur well for maintenance of an accommodative monetary policy that supports productive lending to businesses and to households, for welfare enhancements that also drive 16  economic activity.