However, the pace of the vaccine rollout and the effectiveness of the vaccines entail uncertainties, and thus there is a risk that downward pressure on economic activity will increase. It is also uncertain how firms' and households' appetite for spending and their behavior, including price setting, will change due to the shock caused by COVID-19 that has pushed down the economy considerably.
Moreover, if COVID-19 has a larger impact than expected, attention should be paid to the risk that deterioration in the real economy will affect financial system stability, thereby exerting further downward pressure on the real economy. II.