Such monetary policy resulted in a complete failure.18  18  The transcript of the February 2007 Monetary Policy Meeting, at which an interest rate hike was decided, was released on July 31, 2017. In relation to this, in an interview by Jiji Press, Kazumasa Iwata -- who was deputy governor in 2007 -- said that it was a failure to raise interest rates.
Moreover, in many BIS Review 70/1998  -3-  cases the central bank is in a good position to strive for market-enhancing and prudentially justifiable deregulation and technical innovations. However, during liquidity crises, central banks should not assume an official, predetermined function of “lender of last resort” because of the associated problem of moral hazard.