Bias of risks to the outlook  Our ability to stimulate the economy could have been constrained by the Effective Lower Bound. Risks to achieving our mandate  Significant threat to employment mandate if risks to the economy materialised. A decade of below-target inflation increased risk of expectations becoming deanchored on the downside.
Least regrets  15  Deliver stimulus sooner rather than later, thus minimising the risk that stimulus delivered turns out not to be enough. Considerable monetary and fiscal stimulus supporting the economy. A least regrets approach to uncertainty: Hawks, Doves and the White Heron (he Kōtuku)  Risks assessed as evenly balanced.