In the period following the OMT announcement, tensions in sovereign bond markets subsided, supported also by policies at the national level. Before OMT there was a high dispersion in the response of lending rates to reduction in the MRO rate. In some cases lending rates actually increased following cuts in the MRO.
1 Price stability is the bedrock of a healthy economy and provides the public with immeasurable benefits over time. But restoring price stability when inflation is high can require measures that are not popular in the short term as we raise interest rates to slow the economy.