Moreover, in an effort to curb overheated property investment, they have strengthened regulations and taxation on property transactions, lowered the required loan-to-value ratio for financial institutions, and imposed tighter limitations on bank loan volumes. These specifically targeted policy actions have indeed begun to take effect. For example, the upward pressure on property prices seems to have eased somewhat in several economies.
I assure you that the Federal Reserve will continue to use these tools, as well as to examine various other authorities, to respond in a deliberative and balanced manner that is in the interests of markets, financial institutions, and consumers. 6  BIS Review 115/2007