The evidence suggests that reductions in the key interest rates have so far had significant expansionary effects. Going forward, however, the risks of undesirable side effects may grow the longer the key interest rates remain at negative levels and, especially, the lower they fall.
This has become a critical issue in recent years because of the increasing demand for collateral. Finally, T2S will contribute significantly to making settlement more reliable thanks to its extremely robust business continuity solution, based on the model already developed for TARGET2.