A strong framework enhances the resilience of the economy, making it better able to weather adverse shocks. An important recent example of such a shock was the sizable oil and commodity price declines in 2014 and 2015. The policy rate reductions we made in 2015 in response to this shock were effective in facilitating the economy’s adjustment and returning inflation to target.
Graph 1  In the US, new issuance in 2012 to date is a little over half the level seen since issuance peaked in 2006 (Graph 1). RMBS issuance is still exclusively by the government-sponsored enterprises. Private-label issuance of RMBS remains dormant. Some other segments of the market appear to be recovering, particularly securities backed by auto loans and credit card receivables.