BIS central bankers’ speeches  3  [Slide 18: Signalling: Money market rates expected to remain low] Forward guidance has been credible in a sense that expectations on money market rates remain low well into the future. The money market rates are expected to remain zero at least until 2017. [Slide 19: 2.
Signaling: Transmission of low policy rates to provision of credit has improved] Further increase in accommodative monetary policy by asset purchases has worked itself through banks’ retail interest rates. Since the announcement of the purchase programme, the average interest rates of new corporate loan agreements have kept falling, especially in GIIPS countries.