However, other outcomes, including deflation caused by prolonged fiscal austerity, inflation caused by large-scale debt monetisation, or some disruptive event such as a change in the composition of the euro area, cannot be ruled out at this stage. We therefore need to monitor the situation carefully and remain alert to the risks.
In Japan, the government declared a state of emergency and formulated emergency economic measures with a project size of 117 trillion yen. The Bank of Japan, at two consecutive Monetary Policy Meetings (MPMs), decided to enhance monetary easing.