But the operative word here is prudential. Just recently we tightened rules for bank lending against stocks. Our motivation was strictly the maintenance of financial stability. 4  BIS Review 131/2010  Let me end, by making a pitch for monetary policy taking financial stability seriously.
I know that there are many who continue to believe that monetary policy should be guided by a single objective, namely keeping goods inflation stable. I think the world paid a heavy price for doing so. It was this orthodoxy that prevented many central banks from seeing what else was happening in their financial markets which in turn brewed the global crisis.