Graph 2 The link between house price inflation and the CPI (annual percentage change)  2  BIS Review 7/2004  Central banks also pay attention to asset prices because they contain information that’s very useful when setting monetary policy. Normally asset prices reflect perceptions of future income streams that the assets will earn.
Therefore, asset prices tell us something about how people think the economy will perform in the months and years ahead. Accordingly, in the ordinary day-to-day operation of monetary policy asset prices matter.