They overdid it, defaults started to rise, losses were taken and they toughened their terms again. The speed and severity of that cycle can have implications for financial stability as well as the stability of the broader economy. It is for that reason that there is a wide acceptance that there may be a case for monetary policy to “lean into the wind” in a cyclical upswing. 11 That has been one factor in my support for the four interest rate rises of the last year. If there is evidence of a cyclical, unsustainable, element in the supply of credit and asset prices the next questions are: •  where are we in the cycle, and  10  M King “Speech to CBI Dinner, Wales”, 11 June 2007. 11  C Bean “Inflation Targeting: The UK Experience”, speech at the Annual Conference of the German Economic Association, 1 October 2003. 6  BIS Review 73/2007  •  is the present stance of monetary policy sufficient to bring it back to a sustainable trend or, given the lags in the impact of interest rate changes, is it set to exacerbate the downturn? Current conjuncture So where are we now? The consumer credit market in the UK and the sub prime and broader housing markets in the US have turned down and, while the sub prime saga is still not played out, it still seems unlikely that it will have severe knock on effects on the broader economy.
Anita Angelovska Bezhoska: Welcoming remarks - Vienna Initiative Full Forum Welcoming remarks by Ms Anita Angelovska Bezhoska, Governor of the National Bank of the Republic of North Macedonia, for the Vienna Initiative Full Forum, Skopje, 22-24 March 2023. *** Your excellences ambassadors, minister of finance, dear governors, chair of the Vienna initiative, distinguished representatives of European and International institutions Dear Ladies and Gentlemen, It is my great honor and pleasure to welcome you at the Annual Full Forum meeting of the Vienna Initiative. As Helen Keller said - "Alone we can do so little, together we can do so much." This saying lies in the essence of the Vienna Initiative – partnership among international institutions, public and private stakeholders whose common objective is safeguarding financial stability of CESEE region. Established at the height of the GFC to prevent nation-based uncoordinated policies that could led to systemic banking crisis, we have come a long way, expanding activities and fostering financial stability in the region. This initiative is particularly relevant for countries that still do not belong to the European Union family, do not have access to EU backstop facilities and as such are even more vulnerable to exogenous shocks. Collaboration and coordination is key in times of crisis. Unfortunately, in the last three years we are in the mode of "Perpetual crisis". Severe global shocks of unprecedented nature are hitting the world economy and unfolding into the "great return" of inflation and cost of living crisis.