That is, they add to demand as well as to supply. It follows that the demand for additional dwellings, among other things, is likely to remain strong. Corresponding effects will flow on to urban infrastructure requirements and so on.
They have to consider these risks not just in the fields of supervision and financial stability, but also when implementing monetary policy. A thorough risk assessment is essential for protecting central banks’ own balance sheets. Besides, central banks can act as catalysts, linking the eligibility of assets to climate-related reporting. They could consider buying securities only from issuers that do fulfil proper disclosure requirements.