While on the other side, they need to maintain financial system stability, mainly by strengthening regulation and supervision and improve the balance sheet structure of financial industry, banking in particular, and its risk management as well as to avoid the potential inflation in the medium to long term horizon. Striking the optimal balance between these two situations will be challenging and dynamic.
I would then like to touch on my opinion about the policy measures necessary to achieve the price stability target. A. Framework of Monetary Policy Conduct As shown in Chart 8, the Bank conducts monetary policy under the framework of Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control, aiming to achieve the 2 percent price stability target.