8 The Federal Reserve permits purchases of debt issued or guaranteed by the U.S. government or government  agencies (such as agency debt and agency MBS). 9 This channel usually relates to signaling about short-term rates. A variant is to target longer-term interest rates  by a commitment to use balance sheet expansion if necessary. The ECB’s OMT program, created to purchase government bonds of euro-area countries that were granted financial assistance under certain conditions, was perceived as meaningfully reducing yields through commitment alone; no actual purchases were needed. In late September 2016, the Bank of Japan unveiled a new monetary framework called “quantitative and qualitative monetary easing with yield curve control” (QQEY). The new regime consists of two major components: (1) “yield curve control,” in which the BoJ will target both short-end interest rates (with the deposit rate at –0.1 percent) and long-dated yields (around 0 percent for 10-year Japanese government bond yield), and (2) an “inflationovershooting commitment,” which amounts to maintaining monetary expansion until the 2 percent inflation target is exceeded in a stable manner. 10 See the May 10, 2010 press release for the ECB’s Securities Markets Programme. 11 For example, the Federal Reserve chose to transact in the agency MBS market via external investment  managers at the start of LSAP I “as a means of implementing the MBS program quickly and efficiently while at the same time minimizing operational and financial risks.
This approach should be a consensual approach of the shareholders, a transparent one, where everybody, sponsors and countries of operations agree on the principles and objectives. Ladies and gentlemen, 1/2  BIS central bankers' speeches  Allow me to conclude by saying that the National Bank of Romania strongly supports the partnership with the European Bank for Reconstruction and Development. We appreciate the assistance provided and its benefits and positive impact. We will remain your reliable partner, as always. I invite Mr. Eugen Teodorovici, Minister of Finance and Governor to the EBRD to give his keynote speech on “Romanian Government Program and Future Presidency of the European Union Council”. I wish you fruitful and successful discussions. Thank you. 2/2  BIS central bankers' speeches