Central banks in several developing countries have placed exchange rate management as another important policy objective. In recent years, particularly after the financial crises of 1990s, the concern for financial stability is an integral part of the central bank’s activism.
Housing outcomes are therefore central both to the welfare of households and the stability of the financial system. The housing sector is also crucial on the monetary policy side, my new role. As a sector, it is especially sensitive to interest rates. It is a key part of the transmission mechanism of monetary policy.