BIS Review 28/2004  1  The Dialogue, moreover, fills a role not presently served by any one of those ongoing relationships and discussions. As the market for financial services becomes increasingly integrated, the interests of banking, securities, and insurance regulators correspondingly are becoming more common and intertwined. The Dialogue provides a forum for discussion of issues in each of these areas.
The shock caused by the higher energy prices renders it necessary to search for a balance between the risk of insufficient tightening, which could lead to inflation becoming rooted in expectations and in processes for determining nominal income, and the risk of a disproportionate tightening, which could have overly acute repercussions for economic activity, and negative effects on financial stability and, ultimately, on medium-term price stability.