It therefore remains vital for fiscal and monetary policymakers to guard against the risks of these financial amplification channels.
Ensuring favourable financing conditions At our October monetary policy meeting, we announced that, on the basis of a thorough assessment of the economic outlook and the balance of risks surrounding it, we will recalibrate our instruments, as appropriate, to respond to the unfolding situation and to ensure that financing conditions remain favourable to support the economic recovery and counteract the negative impact of the pandemic on the projected inflation path.