In order to prevent conflict between monetary policy and macro-prudential policy, governance structure should be clarified.3 Broadly speaking, there are two types of governance structure here. In one the central bank in charge of monetary policy is also responsible for macro-prudential policy. In the other a supervisory agency apart from the central bank is fully in charge of macro-prudential policy.
Moreover, over the past few months the monetary policy decisions of central banks have been occasionally at the centre of public debate triggered by concerns that interest rate increases might adversely affect economic activity, as well as by more general considerations regarding their policy mandates.