Monetary policy short-term rates are low because of those developments, not the other way around. At the same time, our monetary policy has to be accommodative precisely in order to normalise inflation and growth rates therefore getting to higher interest rates. 2  Annualised six month growth rate of MFI loans to the private sector adjusted for sales and securitisations.
BIS central bankers’ speeches  3  Furthermore, in the present short-term conditions, with fiscal policy blocked, it is monetary policy that can create the hope that this normalisation will protect savers in the future and improve net margins for banks. Financial Stability risks and macroprudential policy Clearly, no policy intervention is without side effects.