As the impact of COVID-19 wanes, demand imbalances and production and shipping bottlenecks are likely to head toward a resolution. However, if the effects of supply-side constraints are prolonged or amplified by more than expected, there is a risk that economic activity will deviate further downward from the baseline scenario, particularly in the first half of the projection period. II.
Monetary Policy Responses to COVID-19 and Climate Change Next, I would like to talk about the Bank's monetary policy actions regarding the two important challenges that the world is facing: COVID-19 and climate change. A. Responses in Light of the Impact of COVID-19 Let me first touch on policy responses in light of the impact of COVID-19.