25 This is also confirmed in Gambacorta, L. and H. Shin (2016), “Why bank capital matters for monetary  policy”, Journal of Financial Intermediation. 26 See Brooke et al (2015) ibid.
If, on the other hand, the problem of weak growth performance is to be addressed, policies designed to stimulate higher levels of economic activity might result in further acceleration of the inflation rate. The need to maintain a delicate balance between the two conflicting objectives is, therefore, obvious.