At the beginning of December, since there was concern over a risk that international financial developments and instability in the foreign exchange market might adversely affect economic activity through worsened business sentiment, the Bank promptly held an unscheduled Monetary Policy Meeting and introduced a new funds-supplying operation in order to further enhance monetary easing.
Furthermore, it might further restrict credit conditions while the banking system is still restructuring its balance sheet. If, on the other hand, the decision is taken too late, monetary conditions will remain too lax for too long, sowing the seeds of the next crisis.