Lowering interest rates could worsen vulnerabilities related to household debt at the margin, but it would also lessen the chances of the oil price shock triggering financial stability risks. In the current context, getting the economy back to full capacity with inflation on target is central to promoting financial stability over the longer term. Conclusion It’s time to conclude.
The dramatic events of the financial crisis required a dramatic reaction. New financial sector rules are being implemented to make the global economy safer. For financial institutions, this is a long and difficult path, but the stakes are too high to contemplate leaving the job incomplete.