BIS central bankers’ speeches  3  From the point of view of financial stability, however, it is not just the change in the price of residential property which matters. The interplay with lending is crucial.
Besides solid macroeconomic policy frameworks and prudent wage policies, progress in structural reforms is conducive to price stability by improving the supply side of the economy and enhancing the growth potential. This brings me to the second challenge that I want to mention: the need to achieve sound fiscal positions.