If we take only the financial cycle into account, we may be forced, even with our medium-term orientation, to make compromises in terms of our price stability objective. According to our hierarchy of goals, which gives priority to monetary policy, this would not be permissible.
In addition, there is also the question of which interest rate path should be followed to counter excessive credit growth. Some studies conclude that in a highly leveraged boom  BIS central bankers’ speeches  5  even small changes in interest rates can have a strong impact.