Rather, one scenario to be worried about may simply be a sharp increase in marketwide rates and spreads at an inopportune time, such that it becomes harder for us to achieve our dual-mandate objectives. Having said all of this, I believe we are currently in a pretty good place with respect to the pricing of interest rate risk.
However, this does not mean that the overall stability of the financial system as a whole has become less important for the Bank of Latvia. Both institutions will continue to cooperate, as adequate monitoring of financial stability requires a combination of ‘‘macro’’ and ‘‘micro’’ perspectives.