Even among economists, whether the impact will be deflationary or inflationary is a controversial subject. A decline in demand due to the impact of COVID-19 exerts downward pressure on prices of goods and services.
As I see it, macroprudential oversight can take two directions: macroprudential activities may focus on increasing the resilience of individual systemically important market players. Alternatively, the goal may be to reduce procyclicality. The aim of raising market players’ resilience is virtually self-explanatory. In the event of a crisis, players have more room for manoeuvre if they are more stable.