IMO they are still trying to get the banks to pass on the rate cuts to the public an private companies... which they haven't been doing enough. Partly because banks themselves need to hold more cash to keep their ratio's up. Theoretically, if the CB charges other banks money to hold cash... they should choose to lend out at more favorable rates.... But they're not doing that. I think the central banks/governments should force banks to lend out to the public and get expenditures/consumption going again.
I don't know about forcing banks to loan money at rates lower than they are now. Mortgages are not going to go any lower. Mortgage rates are 3.8, 4.0, 4.5 percent for 30 years. At least if you have reasonably good credit. It doesn't get better than this. I wonder if the lower fund rates are being done to benefit the governments that borrow to finance their deficit spending and prop up large banks that might have precarious debt ratios as much as it is done to encourage consumer spending.
In the uk many mortgage rates are linked to the central bank base rate. Typically 2% above the base rate. Prior to the 2008 you could get a mortgage tied to just 0.5% above the base rate, which is what i took out in 2003. So my mortgage rate is now just 0.75% after yesterdays cut. Lenders back then never thought they would ever go this low, so i got a good deal.
"QE Infinity", "Buy bonds with immunity inpunity". I love it. Finance is on the leading edge of new language construction. I myself am making a post Brexit, mid QE Infinity, pre Frexit bet on immune banks because their bankers will continue to act with inpunity!