When fully phased in, the rules will make crisis management easier, but in the short term they will increase costs by a factor that will depend on the choices − still being debated − regarding the calibration of the requirement and the nature of eligible liabilities.
When the monetary policy transmission mechanism functions, then decisions on the official interest rate, in the case of the ECB the minimum bid rate in main refinancing operations, appropriately affect inflation and economic activity through various channels, in line with the established standard empirical relationships. The starting point of the monetary policy transmission mechanism is the overnight interbank market.