Generally speaking, credit easing measures influence the economy via three main transmission channels: direct pass-through, portfolio rebalancing and signalling. All three channels supported the key motivation underpinning the design of this package, namely to improve the pass-through for liquidity injected into the financial system to private sector borrowing costs and to reinforce the accommodative monetary policy stance.
The credit easing measures were immediately effective in turning around the credit crunch situation prevailing in a number of countries and favouring a pronounced easing in bank lending conditions for companies and households.