Moreover, the argument goes, low interest rates depress banks' operations, actually impeding banks' financial intermediation function, thus obstructing the effects of monetary  4  easing; or, banks, faced with squeezed profits, will take excessive risk, threatening the stability of the financial system. However, essentially, whatever one does, there are always risks.
The reason for doing something even if there are risks is that it produces some sort of result. And looking at the Bank's monetary policy, it certainly has produced results. Therefore, before considering the purported risks in more detail, let us first have a look at the achievements of monetary easing. II.