Satisfying precautionary demand was also important in the early stages of the pandemic, but subsequently the mix of assets shifted to longer-term repos (via the TFF) as well as government bonds. Consequently, the breadth and the durability of the easing in financial conditions associated with these balance sheet tools has been greater now than was the case during the GFC.
Conclusion The Bank is using a number of monetary policy tools as part of the package of measures adopted to support the economy through the pandemic. This means that the task of assessing the stance of monetary policy is very different and more complex than it used to be.