There is presented a hearing aid that comprises an input transducer for transforming an acoustic input signal into an electrical input signal, a compressor for generating an electrical output signal from the electrical input signal, an output transducer for transforming the electrical output signal into an acoustic output signal, an autocorrelation estimator for calculating an autocorrelation estimate of the electrical input signal, and an acoustic loop gain estimator for determining a dynamic gain limit from the autocorrelation estimate and an instantaneous gain level of the signal processor. The invention further provides a method of adjusting signal path gain in a hearing aid, and a system for providing increased stability in a hearing aid.