In the absence of a broader swap network, the macroeconomic environment of each country will inform the choice of policy instruments. In such a milieu, international financial stability is endangered when the inadequacy of buffers precipitates a crisis in one country and assumes global proportions. Likewise, there cannot be any common code or uniform approach to capital account liberalisation.
It also agreed to maintain the current margin of 10 basis points between the ES rate and the cash rate target (subject to periodic review, as the appropriate margin could change over time as market conditions evolve). In the current environment, that modest difference helps to ensure effective control of the cash rate.