In the real estate market, price-to-rent ratios for both residential and commercial real estate are now within a reasonable range of BIS central bankers’ speeches  7  their long-run averages, in contrast to the severe misalignment that occurred prior to the crisis. Again, there is little sign here of imbalances relative to fundamentals, at least if history is used as a guide.
Second, the central bank must decide whether more or less macroeconomic stimulus is needed.