Macroprudential policy, on the other hand, can, by nature, be made more targeted to address such situations. When monetary policy is loose, for instance, macroprudential measures can be used to mitigate the risk of localised bubbles in certain markets. This is not just a theoretical possibility.
In 2021, with monetary policy still very accommodating, several Member States tightened their macroprudential policies to mitigate the risk of localised overheating, especially (though not exclusively) in property markets. This condition does not mean that the two would then work against each other.