Current available instruments create buffers to better absorb losses when they occur, but they neither improve the functioning of the real economy, nor do they stem the origination of losses. For example, an important systemic risk like corporate indebtedness cannot be directly addressed by macroprudential authorities. Thirdly, potentially very effective measures often do not fall within the remit of macroprudential authorities.
This follows downward revisions in earlier projection exercises. The persistence of low inflation rates reflects sizeable economic slack weighing on domestic price pressures and headwinds from the external environment.