The tension that  4  BIS central bankers’ speeches  we need to manage is that economic growth requires that we maintain a low interest rate regime whereas inflation management warrants that we raise interest rates.
Diversity The RMBS market is an important source of funds for mortgages issued by smaller competitors to the major banks. So, it’s reasonable to expect that low spreads should encourage some more of those competitors to come to the market. Indeed, that’s what we have seen (Graph 5).