In order for a reduction in interest to affect the exchange rate the public must feel that we have abandoned the target of price stability and that the circumstances have been created that prevent us from restoring it in the foreseeable future. That, as you know, has not been the case in the last two and a half years.
Though it might mean more time and effort for one bank or another in the short run, for society it  BIS central bankers’ speeches  1  means more stability in the long run – which will also benefit, not least, the banks themselves. 3. Banking supervision: increasingly international  However, regulation only defines the rules of the game.