This facilitates the clear distinction between interest rate decisions taken to preserve price stability and liquidity measures adopted in the course of implementing this stance. This distinction is certainly useful under normal market conditions and has proven to be of great relevance in periods of financial turbulence, albeit for somewhat different reasons.
For this reason, it is imperative to have a clear view of the ever-changing context that central banks face and be ready to identify threats, vulnerabilities, as well as their interconnections, to be better prepared to  5  prevent and to preemptively address these risks and mitigate their impact.