Generally speaking, when an economy faces a deflation trap with the constraints of the zero lower-bound on the nominal policy interest rate, the plausible channels for economic stimulation and achieving a price recovery are (1) the channel through foreign exchange rates and (2) the channel through asset prices.
The Bank should thoroughly monitor the possibility of financial and foreign exchange market unrest and conduct market stabilization measures in a timely manner if necessary. Our review of financial systemic risks should also be strengthened.