This policy package exerted significant influences on the overall interest rate environment. Specifically, the provision of ample liquidity drove the uncollateralized overnight call rate, which should reflect credit risks of borrower financial institutions, lower to 0.001 percent under the quantitative easing. In addition, the commitment to continue zero interest rates substantially flattened the yield curve.
Thirdly, price stability cannot by itself guarantee financial stability. Where the economy maintains low prices and rapid growth for a lengthy period of time, an accumulation of financial imbalances threatening financial system stability can even perhaps be overlooked.