One possible hypothetical response to such developments could be that central banks give greater prominence to secured and repo market rates. As a second possible development, market participants may retain a higher level of risk aversion than was the case before the crisis. This could lead to higher risk premia and continued market tiering.
Lending rates in the money markets may also become more dispersed, depending on the credit quality of the bank that is borrowing. This would render the task of the central bank more complex. Finally, the interaction between the new Basel III liquidity standards and monetary policy operations is likely to be significant and complex.