While there are strong arguments for providing such facilities to them given their criticality in the financial system, the issue of moral hazard needs to be adequately addressed while providing such support. There are also quite a few areas where work is in progress such as counterparty credit risk, capital for exposures to CCPs, etc.
Distinguishing between the short-term effects of the pandemic and longer-term structural shifts in the economy is crucial in making the near-term policy decisions to achieve our dualmandate goals. In the near term, higher interest rates intended to lower inflation work most directly in the housing market.