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Low interest rates provide a stimulus but can also create risks
(09.06.2015)
Bank of Finland. Bulletin 2/2015
Bank of Finland. Bulletin 2/2015
Accommodative monetary policy is necessary for price stability and economic recovery. However, abundant liquidity and the search for yield fuelled by low interest rates can also create risks for financial stability.
Overheating of global financial market could also have a destabilising impact on Finland
(09.06.2015)
Bank of Finland. Bulletin 2/2015
Bank of Finland. Bulletin 2/2015
An overheating of the international financial markets would spread to Finland, too, pushing up asset prices and possibly boosting the supply of loans. From a macroprudential perspective, strong growth in both these indicators ...