Costs of keeping interest rates low over a long period  Maintaining our medium-term focus is particularly important in the current environment. Short-term volatility is extensive and uncertainty remains unusually high. Thus, central banks need to avoid just looking at the short-term consequences of a somewhat tighter monetary policy stance and take a longer-term perspective.
This should include the costs and related risks to price stability that may arise if interest rates are kept too low for too long. The risks associated with keeping interest rates low for too long a period have been clearly exposed and documented in several recent analytical contributions.