Sentences with phrase «stringent macroprudential»

Indeed, a combination of lower interest rates and more stringent macroprudential policy would likely work to reduce both financial stability risks and the risk of an undershoot of inflation at the same time.

Not exact matches

This might mean, for example, that the central bank would need to run a more stimulative policy than it would have otherwise to offset the effect of macroprudential policies, and the macroprudential authority would impose more stringent measures than it would have otherwise to counteract the leverage and risk taking generated by looser monetary policy.