Accordingly, we will continue to hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. In our current projection, this takes us into 2023.
Even 2000 years ago, long before securitisation and credit risk transfer had been invented, Seneca had identified the problem of inappropriate incentives when he warned that one should “be wary of the man who urges an action in which he himself incurs no risk”.