The limitations of
macroprudential policies reflect the potential for risks to emerge outside sectors subject to regulation, the potential for
supervision and regulation to miss emerging risks, the uncertain efficacy of new
macroprudential tools such as a countercyclical capital buffer, and the potential for such policy steps to be delayed or to lack public support.14 Given such limitations, adjustments in monetary policy may, at times, be needed to curb risks to financial stability.15