This is the philosophy behind our third criterion for declaring a “sustained adjustment in the path of inflation”, which is a pre-condition for starting to normalise our purchases and, indirectly, for starting to normalise our policy rates – through the sequencing we expect to follow toward a more normal configuration of policy.
The Financial Stability Committee has calculated that the so-called narrow measure of shadow banking assets have grown from to 36 trillion US dollars in 2014 with the growth having averaged over 6 percent across jurisdictions between 2011 and 2014. At least three drivers can be behind this development.