Along with expectations of the future evolution of the cash rate, this influenced rates out along the (risk-free) yield curve. This in turn affected rates on corporate bonds, mortgages and other financial products that reference different points along the yield curve. Key asset prices – such as the exchange rate and equity prices – also reacted to changes in the yield curve.
In my view, what would no longer be part of such a business model would be proprietary trading and credit substitution business, nor would the extensive activities in foreign business, as in the past decade, that had no connection with the customers at home.