One aspect is price stability – what price stability means and how we define it. It will also cover the symmetry of our aim. Our reaction function is another aspect – in other words, how we react when we don’t meet our objective. I’m sure the discussion will be a lengthy process.
Enterprises and households alike can borrow cheaply, and they have accumulated comfortable capital buffers. The number of insolvencies and credit defaults is low, and valuations in financial markets are high. This upbeat macroeconomic situation is conducive to a gradual rise in interest rates. Assuming the economy does indeed follow its expected path, the risks to financial stability will probably be limited.