As a consequence, the lowest interest rate the Bank would accept was also reduced to 0.001%, and, thanks to such efforts which some market participants have termed ‘nano-technology’, under-subscription ceased thereafter. However, this does not guarantee that under-subscription will not occur again in the future.
In any event, liquidity is being amply provided to markets and discussion is now geared toward focusing on the marginal difference between 0.01% and 0.001%. Limits to monetary easing measures Such experience also implies that there might be a practical limit such that a central bank cannot unlimitedly provide liquidity beyond the demands of financial institutions.