Moreover, the behaviour of long-term rates in the US in the period between mid 2004 and mid 2005 – famously phrased as a “conundrum” by the then chairman of the Federal Reserve – has raised fears that monetary policy might have lost influence over domestic long-term rates in the face of closely integrated financial markets.
Analysis and assessment on risks in the financial system Taking those points into account, the Bank examines risks in the financial system in establishing the guidelines for monetary policy. In establishing the guidelines for monetary policy, the Bank assesses the economic and price situation from two perspectives.