Or, possibly, the warnings of risk managers may have simply been ignored, with their reports coming low down the list of urgent matters, as the primary focus was on outperforming the competition in generating short-term profits.
It is also my understanding that achieving the price stability target in a stable manner does not refer to a state in which the year-on-year rate of increase in the CPI simply marks 2 percent, but rather one in which people’s medium- to long-term inflation expectations are re-anchored at around  6  BIS central bankers’ speeches  2 percent – in other words, a situation in which households and firms are projected to shift their consumption and investment behavior to one that assumes around 2 percent inflation.