Indeed, while GSE stock prices have fallen substantially and turmoil has continued at the GSEs, mortgage markets have functioned well. Others have asserted that fixed-rate mortgages would be more difficult, or perhaps even impossible, to obtain without the GSEs' portfolios. But, again, we see little empirical support for this argument.
Conclusion I wish to conclude by underscoring the main message of this year’s Monetary Policy Statement - that inflation should continue to be restrained during 2003. This effort will be supported by an expected favourable external and domestic developments, although there are uncertainties about the price of oil.