Financial stability as an independent goal I just described how financial stability contributes to the maintenance of price stability. Symmetrically, price instability is also unambiguously harmful for financial stability. By blurring signals from relative price changes, inflation often leads to distortions in the allocation of resources. Equally, the likelihood of misperceptions about future profit possibilities can be increased by inflation.
It gives customers the certainty to make plans even beyond an interest rate cycle. The problems currently afflicting the US property market show the impact that variable rates in this segment can have on customers and, ultimately, also on financial  4  BIS Review 33/2007  stability. Stability should always be an additional consideration when devising regulatory measures.