It should also be noted that, on April 4, the Bank took all possible policy measures that would be available for the time being. Therefore, additional easing measures, if any, could be counterproductive in terms of shifting people’s expectations.
It is true that the Bank has reiterated in its statement released after Monetary Policy Meetings that it “will examine both upside and downside risks to economic activity and prices, and make adjustments as appropriate.” My understanding is that the downside risks described here refer to tail risks, including significant turbulence in global financial markets that would be comparable to the Lehman shock and the European sovereign debt crisis, and do not concern such trivial matters as a small divergence of the outlook for economic activity and prices from the baseline scenario.