Impact of June-October policy decisions The policy announcements since June, together with the rate cuts, have already led to a further considerable easing of the effective monetary policy stance – although the liquidity injections via the TLTROs and purchase programmes will only gain pace in the coming months. This additional easing is evident from various metrics of the market-based cost of financing.
Reviewing the global financial crises in history, we know that a crisis will prompt fresh institutional reforms in addition to causing massive damages. Since the outbreak of this round of crisis, the international community has agreed on the need to strengthen efforts to implement macro prudential policy.