Second, the central bank should not target asset prices but should take asset prices into account in forecasting inflation and in assessing whether the economy is embarking on unsustainable debt accumulation. This requires central banks to pay particular attention to developments in the financial and credit markets and to look closely at firms’ and households’ balance sheets.
On behalf of the Board of Directors and Management, l would like to express our profound gratitude to you members of the Press for the collaboration we have had during the year. As effective communication is necessary to ensure that the monetary policy transmission is not unduly impaired, we are very grateful for your support. 2.