There is a clear recognition of the importance of market expectations in the conduct of monetary policy, partly influenced by academic work and partly by the demonstration effect of evolving practices among central banks.
For example, actions to support banking systems should not distinguish between domestic and foreign-owned institutions, nor should credit be diverted to domestic borrowers through subsidies or inappropriate regulatory incentives. Stabilising the financial sector also includes establishing greater clarity on what the regulatory framework will look like in the longer term.