The FPC is required to set forth a general statement of its policy and to make quarterly determinations of whether to impose or change a countercyclical buffer.22 I should note, however, that Parliament extended the countercyclical power beyond the broad measure in Basel III and also granted the FPC authority to direct increases in the risk-weights applicable to specific sectors judged to pose a risk to the financial system.
Sources: Bloomberg, Reuters, ECB calculations.10  6 / 13  BIS central bankers' speeches  The conduct of our monetary policy Our monetary policy reaction function has always been firmly anchored to our objective to maintain inflation at levels below, but close to, 2% over the medium term.