But despite the lower bound, asset purchases and forward guidance can push long-term interest rates even lower on average than in the unconstrained case (especially when adjusted for inflation) by reducing term premiums and increasing the downward pressure on the expected average value of future short-term interest rates.
2  I acknowledge the Bank for being an active user of the Reserve Bank’s import substitution and export finance facilities. We continue to encourage banks to utilise these services for the benefit of their customers. Ladies and Gentlemen, HFC’s achievement in this three year period is testament to public confidence in the Fijian banking industry and in a growing Fijian economy.