How will financial stability considerations be integrated in the monetary policy process? The questions are many. Monetary policy might change for at least three reasons. First, the economic environment in which it is set has changed dramatically. Most notably, public debts have increased sharply since 2007 and sovereign risk premiums are in some cases large.
The second question concerns the risk that more detailed description of the commitment to maintaining the quantitative easing policy may affect the Bank’s ability to conduct monetary policy in a flexible and timely manner in future.