However, calibrating the magnitude of a monetary policy response to address financial imbalances – even assuming that these can be identified at an early stage – is difficult at best given the bluntness of the monetary policy tool and the uncertain lags with which it operates. For these reasons, the use of monetary policy to address financial imbalances should generally remain a last resort.
To end with a metaphor on the waterworks for which your host country is so well-known: water will find its way naturally through paths with the fewest obstacles, but man-made dykes may channel this to the benefit of mankind. 5  BIS Review 77/2000