Banks became quite uncertain about the losses they might have to absorb on mortgages and other lending, about the losses their counterparties might also suffer, and about the extent to which their liquidity was at risk from having to support offbalance-sheet entities or from experiencing a withdrawal by their own lenders.
In fact, in our April 2020 Monetary Policy Report, we did not publish our usual forecast but instead presented a range of possible outcomes as we see here (Chart 4).