Asset price dynamics are an important consideration in the pursuit of price stability by monetary authorities. The build-up of asset market imbalances contributes to financial stability risks that can harm economic activity, and in turn affect the outlook for price developments. The recent global financial crisis resulted in a deep economic downturn which became a major source of downside risk for the inflation outlook in advanced economies. Furthermore, financial markets provide an avenue through which monetary policy actions are transmitted to the real economy. Vulnerabilities stemming from the financial sector as a result of asset price bubbles can complicate and reduce the effectiveness of monetary, fiscal, and regulatory policies. While monetary authorities remain focused on achieving low and stable inflation, they will continue to be highly attentive and alert to credit growth, asset price developments, and financial imbalances which can have implications on financial stability and ultimately, on price stability. Monetary authorities will also continue to employ macroprudential tools to help prevent overheating and undue risk-taking in asset markets. Macroprudential regulations already in place have thus far helped make the economy less prone to asset price escalations. These regulations include the statutory limit on the share of real estate loans to banks' total loan portfolio and the maximum loan-to-value ratio for real estate loans.