State and local governments and other municipal bond issuers of a wide spectrum of types, sizes, and ratings have been able to issue bonds, including long maturity bonds, with interest rates that are at or near historical lows. Those municipal issuers who do not have direct access to the Federal Reserve under the MLF have still benefited substantially from a better-functioning municipal securities market.
According to that definition, price stability obtains if it is ensured over the medium term that the year-on-year rise in the harmonized consumer price index (HCPI) for the euro area is less than 2%. To realize the objective of price stability, a monetary policy strategy which rests on two pillars was devised.