However, before we can use such tools, we need a fitting legal basis. The central body for systemic financial supervision in Germany, the Financial Stability Committee, is working on this at the moment. In the next few months, it plans to present the Federal Government with recommendations on establishing a legal basis for the use of these instruments.
4  BIS central bankers’ speeches  However, elected politicians are also currently planning measures which I believe are headed in the wrong direction from an economic perspective. The cap on rents that is to be introduced in the near future aims to protect tenants in “overstretched housing markets” against sharp rent increases. Wealth distribution considerations are clearly the prime motivation for this move.