2/7  BIS central bankers' speeches  Nor should we allow ourselves to become unsettled by the decline in equity prices we have just witnessed. US equity prices rose over a prolonged period without any notable corrections, which was unusual given that valuations have been high overall. Large-scale purchases of sovereign bonds are not the only unconventional monetary policy tool used.
Communication in general, and forward guidance in particular, is now a monetary policy tool in itself, geared towards the evolution of long-term rates. In this regard, BIS Chief Economist Hyun Shin recently recommended central banks that when trying to shape rates through communication, they should avoid reading too much into the development of market rates.