For example, the setting of the main operating target for money market operations to the monetary base instead of the uncollateralized overnight call rate is similar to the framework of quantitative easing – in which the main operating target was the Bank’s current account balances – on the premise that the outstanding balance of banknotes issued does not fluctuate significantly.
The Bank’s seminar a few years ago on reverse mortgages was an attempt to introduce this concept to a wider cross section of interested parties. We are now actively looking to see how we can develop a secondary mortgage market. The legislation is in process for its establishment.