According to this principle, a central bank should clearly separate its function as lender of last resort from its function as monetary policy maker. Since the Global Financial Crisis, policy makers worldwide have become more experienced and more innovative with various forms of lending operations. With this experience came a more coherent and powerful toolkit.
A toolkit that can, and in my view should, be used to adhere to the separation principle for as long as possible. Against the backdrop of a better regulated and better capitalised financial system, we can now deal with a broad range of financial stability related risks without compromising on medium-term price stability.