Sentences with phrase «when macroprudential»

«Nonetheless, participants generally agreed that the Committee should not completely rule out the possibility of using monetary policy to address financial stability risks, particularly in circumstances in which such risks significantly threatened the achievement of its dual mandate and when macroprudential tools had been or were likely to be ineffective at mitigating those risks.»

Not exact matches

When you hear economists and central bankers talk about «macroprudential policy,» this is what they are talking about.

When other countries saw the promise of macroprudential policy, they set up stand - alone entities to apply it, leaving monetary authorities free to concentrate on economic growth and inflation.

Authorities could also, in principle, adjust macroprudential tools to dampen financial cycles — tightening them when leverage is building up and risk taking is increasing, and easing those requirements when that cycle turns.

APRA introduced its first set of macroprudential reforms late in 2014 when it introduced speed limits on the banks» investor loan books by capping growth at 10 per cent per annum.

If we accept that properly implemented macroprudential policies can help to effectively combat financial vulnerabilities by strengthening resilience in the financial system and reducing systemic risk, this supports the view that authorities should look to these policies first when imbalances arise, before turning to monetary policy.

Even in extreme conditions, when financial stability risks constrain monetary policy from achieving the inflation target over a reasonable time frame, a central bank would want to ensure that all macroprudential options were exhausted before trying to address those risks with monetary policy.