1.44 The Government's macroeconomic strategy is designed to protect the economy through this period of instability, to maintain market confidence in the UK and to lay the foundations for a stronger more balanced economy in the future. The Government is taking decisive action with:
• a clear and credible response to the fiscal deterioration, restoring the public finances to a sustainable path, maintaining market confidence and keeping interest rates low;
• monetary activism and credit easing to support the flow of credit in the economy, stimulate demand and maintain price stability;
• reform of the financial system, improving the regulatory framework to reduce risks and lower taxpayers' exposure; and
• a comprehensive package of structural reforms to rebalance and strengthen the economy for the future, including an ambitious package of infrastructure investment.
1.45 Credible fiscal consolidation plans create the space for monetary activism to support the economy and are the essential precondition for stability and a more balanced economy in the future.
1.46 As the OBR has highlighted, in this period of global instability all forecasts are subject to a high degree of uncertainty, particularly regarding developments in the euro area. Recognising this, the Government is committed to taking further action if necessary to meet its fiscal targets, protect the economy and maintain financial stability.