The policies adopted so far, including the changes in the operational framework I just mentioned, the lowering of monetary policy interest rates, the efforts of governments to recapitalize distressed institutions have been all essential to avoid a major financial disruption. However, while some progress is visible, their effect on interbank interest rates has so far been limited and slow to build up.
Liquidity and counterparty risks continue to be major drivers in money markets, which remain impaired with abnormally high spreads between secured and unsecured lending.