This is why they complement each other and rely on one another to be effective. Asset purchases almost certainly enhance the credibility of a central bank’s signals that it will follow a certain course of action for setting policy rates in the future, as these purchases are a concrete demonstration of a desire to provide additional stimulus.
However, a number of other cooperative measures have been undertaken recently: •  We have initiated a secondment strategy of senior staff members between APRA and the Bank. We believe that we can learn from one another. •  We have established a terms of engagement with APRA so that we can dovetail our Basel II implementation initiatives.