On the other hand, just as we concluded in the review of the yield target, if more weight had been given to possible upside scenarios on the economy, the assessment of the relative costs and benefits of the BPP might have been different and led to alternative decisions.
The review concluded that it would only be appropriate to consider the use of a BPP in the future in extreme circumstances – that is, when the cash rate target has been lowered as far as possible. This brings me to the Bank’s balance sheet and its 2021/22 financial results.