Yet, it is biased in selecting instruments to counter vulnerabilities at the national level  BIS central bankers’ speeches  1  while having a tendency to disregard cross-border implications1 such as leakages, which may weaken the overall macro-prudential stance.2 Un-coordinated and potentially inconsistent macro-prudential policies in euro area countries are particularly prone to negative spillovers and would counteract the intended objective to promote financial stability.
Because wages have likely already partially adjusted to the cumulative increase in productivity growth during the last several years, the portion of the acceleration still putting downward pressure on inflation may be somewhat less than 2 percentage points.