If that is so, then we need to think seriously about the implications for the short-term variability of output, interest and exchange rates when deciding on the OCR needed to ensure that medium-term price stability is maintained. In some circumstances, accepting a bit more short-term variability in inflation may mean a bit less variability in interest and exchange rates, and vice versa.
In many countries, the accounting standards for classifying bank loans as non-performing are not tight enough to prevent banks from making bad loans look good. If non-performing loans are systematically understated and are not properly provided against, figures about profitability and bank capital become meaningless.