The ECB provided liquidity elastically to the banking sector and with increasingly long durations, which restored confidence in the financial system. Our balance sheet expanded to unprecedented levels, but it was temporary and non-discretionary. As banks started actively contracting their exposures to a worsening economy, they reimbursed the loans from the ECB.
In the meantime, the South African Reserve Bank will continue to monitor important indicators to ensure that the monetary policy stance remains appropriate. 5. The outlook for inflation  The primary role of the South African Reserve Bank in the domestic economy is to target inflation for the benefit of all economic players.