Without wanting to go into too much detail, it is essential to point out that, when it comes to the impact the recent financial trends have on monetary policy transmission, several countervailing effects are in play.
These countervailing effects are best captured when unravelling monetary policy transmission into its different channels, that is by considering  BIS Review 76/2008  1  individually the different ways in which a change in central bank interest rates affects economic variables – at least in the short term.