The Bank stands ready to adjust our short-term liquidity facilities as market conditions warrant. Well-functioning credit markets and considerable monetary policy stimulus have supported growth through the reopening phase. In fact, we’ve seen more household spending—particularly on goods and housing—than we were expecting, largely reflecting the release of pent-up demand.
Exports are also recovering as foreign demand picks up, although they remain below prepandemic levels. Despite this good news, the members of Governing Council still expect the recuperation phase to be slow and choppy. We don’t expect the strong rebound we’ve seen to continue at the same pace in the months ahead. Business confidence and investment remain subdued.