Challenges to public policy objectives The rapid pace of financial innovation creates challenges for policymakers with respect to each of these policy objectives. In particular, financial stability depends on adequate risk measurement and risk management by market participants.
We’ve seen quite a lot of flattening of forward curves, even ahead of the Governing Council, and that, in itself, provides financial accommodation, so it’s part of the solution. We are comfortable with it. If the market were to overreact, if at some point we see market expectations which don’t fit the way we see the economy, then we would have to react.