Some have suggested that under some circumstances central banks should adjust the overnight funds rate to affect intentionally the relative price of another asset class, namely equities. But if a central  BIS Review 57/2002  1  bank elevates another set of relative prices to being targets of policy, I believe that it should have strong conviction in two areas.
First, that its tool, the provision of reserves to the banking system, will predictably influence that relative price, and with minimal unintended consequences. Second, that adjusting that relative price will, in turn, have a predictable and significant role in achieving our mandate. In the case of equities, I believe that we cannot hold a strong conviction in either regard.