9  Research suggests that, all else being equal, increased uncertainty and greater downside risk in the vicinity of the effective lower bound on nominal interest rates call for greater gradualism under optimal policy than would be the case if short-term nominal interest rates were appreciably above zero. This phenomenon is known as “policy attenuation” in the economic literature.
Without waiting for the official inauguration of the FSC, its members have agreed on a framework for exploiting synergy and have submitted proposals to the Minister for achieving greater cooperation in regard to prudential policy and various support activities.