In his opening statement he discussed the role of macroprudential policies in addressing financial vulnerabilities. He stressed the need to be realistic in our expectations on what macroprudential policies can deliver under the current circumstances. The macroprudential toolkit, Mr. Knot said, is limited in scope and impact to mitigate systemic risks.
Our base-case projection is that these policies will be implemented in an effective and timely manner, and their impact will reach full force next year. Discussions in Washington at the end of April were consistent with that outlook.