Low interest rates reduce the cost to households of buying homes, cars, and other consumer durables while increasing the  10  See Board of Governors of the Federal Reserve System, Division of Banking Supervision and Regulation (2012), “Policy Statement on Rental of Residential Other Real Estate Owned (OREO) Properties”, Supervision and Regulation Letter SR 12-5 (April 5), www.federalreserve.gov/bankinforeg/srletters/sr1205.htm.
4  BIS central bankers’ speeches  attractiveness of new capital investments by firms. Increased demand in turn leads to faster economic growth and more jobs. My colleagues and I have been and remain quite concerned about the stubbornly high level of unemployment – particularly long-term unemployment. We have taken strong actions throughout the financial crisis and recovery to help stabilize the economy.