If sustained such measures could have a long-lasting impact on global trade and, hence, global economic activity. Reflections for monetary policy Clearly, all phases that I have outlined also come with important policy challenges for central banks. As discussed, in the preservation phase, the brief for monetary policy is fairly straightforward.
Our policy is directed at maintaining favourable financing conditions for households, firms and governments, to mitigate any amplification of the ‘corona shock’ through financial channels. However, the challenge does not stop there. Monetary policy will likely need to continue to play an important role in the recovery phase. Private sector activity is expected to recover only gradually.