2  The Bank’s view of recent economic and financial developments, determined by the Policy Board at the Monetary Policy Meeting held on May 20 and 21 as the basis for monetary policy decisions. BIS Review 32/2002  1  to keep exerting downward pressure on prices.
If the continuation of low interest rates leads to a substantial rise in long-term interest rates by raising inflation expectations or by generating expectations for a weak dollar, this may give rise to another problem, namely that the fiscal burden increases and in turn the need for adjustments in the government's balance-sheet arises.