The entirely exceptional joined interest rate cuts on 8 October 2008 and – in similar tense conditions – on 13 September 2001 have to be seen in this context. In both cases there was extraordinary uncertainty about the economic outlook and there was strong evidence that upside risks to price stability had diminished in many world regions at the same time.
Regulatory measures must be developed and agreed upon in international cooperation. In addition, I expect the financial industry to set in train a rethinking towards more risk awareness.