A range of evidence suggests that these purchases and the associated creation of bank reserves have helped improve conditions in mortgage markets and other private credit markets and put downward pressure on longer-term private borrowing rates and spreads.
This underscores the importance of sound and credible fiscal policies by member countries to ensure the independence and credibility of  BIS Review 105/2010  7  their collective monetary policy. Absent that, monetary policy will become hostage to fiscal excesses of individual members. 43. Where do we in India stand on this?