When we set interest rates, we look at costof-capital effects and wealth effects, as well as the impact of changes in asset prices on confidence. And there are some asset prices, expressed as the yield spread between high- and low-risk bonds, that give an indication of credit conditions in the economy, so we look at those too.
In turn, the collapse of CLF had contagion effects on financial and non-financial firms that had exposures to the conglomerate as well as to other regional economies. What has turned out to be our domestic financial crisis certainly underscored (if ever there was doubt) the urgent need for modernising financial sector legislation and upgrading financial regulation and supervision.