For instance, completions recorded for January 2008 were the lowest since early-2003. The Central Bank’s latest estimate is for about 50,000 houses to be completed this year and about 45,000 next year. This is a necessary adjustment to a more sustainable level of output. However, it is having adverse knock-on effects in terms of job losses and lower consumption.
By opening and expanding these facilities, we are trying to assure banks, dealers, and commercial paper issuers that they can extend credit without worrying about whether they will be able to borrow to fund those loans. We are also trying to assure those who lend to these firms that the borrowers will have a source of funding to pay them back.