Interaction between monetary policy and financial stability The second challenge that monetary policy is facing today relates to potential side effects, in particular related to financial stability. The pandemic highlighted that the interaction between monetary policy and financial stability is a two-way street. In the early phase of the crisis, forceful monetary policy action preserved financial stability.
We have a strong focus on doing what is right for the country as a whole over the medium term, even if it is difficult for some people in the short term. Today's decision by the Board is an example of that. I would like to take this opportunity to pay a tribute to two Reserve Bank Board members who will soon be retiring.