We have provided sufficient liquidity to allow credit institutions, on aggregate, to neutralise their monetary reserve deficit relatively soon within the first reserve maintenance period. C. Current economic developments and prospects The Governing Council’s decisions on the initial level of interest rates for the euro area, announced on 22 December 1998, have been made with a view to the objective of maintaining price stability.
Second, the potential disruptions to funding stemming from the repo financing of shadow banks should be ended. One of the sources of instability during the crisis was repo runs, particularly on repo borrowers using subprime mortgage-related assets as collateral. Essentially, these borrowers funded long-term assets of relatively low quality with very shortterm liabilities.