Here is something you don’t see everyday...a Central Banker admitting that monetary policy is ineffective:
"Christian Noyer, a governor of the Central Bank of France (in an interview with Handelsblatt): 'We are currently observing a failure of the transmission mechanism of monetary policy. From the markets’ perspective, the interest rate facing individual private banks depends on the funding costs of the state where they are domiciled and not on the ECB overnight interest rate… Hence the monetary policy transmission mechanism does not work.'”Read it at Bubbles and Busts
Central Banker Admits to Failure of Monetary Policy
The rest of the post is also worth reading for an analysis of the failure of the EZ and why transmission is not working. Expectations have shifted from the central bank rate to national concerns. The ECB is becoming increasingly irrelevant.