Skingsley: Experience with macroprudential policies
On Monday, Deputy Governor of the Riksbank Cecilia Skingsley, together with Eddie Yue, Deputy Chief Executive of the Hong Kong Monetary Authority, will chair a workshop on experiences of macroprudential policy measures in different countries. Ms Skingsley will also make a closing address to the workshop.
Ms Skingsley noted that the workshop's discussions have increased understanding of how different countries choose and implement monetary policy measures, how effective these measures have been and how macroprudential policy measures and monetary policy have interacted in different countries. However, Ms Skingsley pointed out that the effects of macroprudential policy remain difficult to assess and that many questions remain to be answered. One of these questions concerns how much consideration monetary policy must take of financial stability. "My view is that monetary policy could take financial imbalances into consideration under the precondition that inflation is not too far from the target and inflation expectations are well-anchored," said Ms Skingsley.
Ms Skingsley also said that the macroprudential policy measures introduced in a number of countries in recent years have helped build up resilience in the banking sector. At the same time, the so-called non-banking sector has grown substantially around the globe, while the risks linked with the non-banking sector have probably also grown. "In order not to fall behind the curve, it is important that we start developing new macroprudential instruments that can counteract these risks, as it may take years before we can start to use such instruments at national levels," concluded Ms Skingsley.
