We could also introduce term lending activities if the above combined actions proved insufficient and if retail banks are not passing on the very low rates to customers. Foreign asset purchases could also be useful if a specific economic shock was from offshore and resulted in an overvalued NZ dollar.
BIS central bankers’ speeches  5  Based on that view, the Bank of Japan’s monetary policy is conducted within a framework in which the Bank examines various risk factors, including those related to financial imbalances, in addition to the assessment of the current developments and outlook for economic activity and prices, from the perspective of achieving sustainable growth with price stability.