Further, although , OMOs are currently being used to make those infusions, the LAF window is always available to the system to the extent of this surplus capacity.
In addition, the recently established Marginal Standing Facility (MSF) allows banks to use a further one per cent of their SLR holdings, which, given the interest rate structure, they will only do in situations of extreme stress. In recent weeks, there has been no recourse to this window, which could mean that the there isn’t too much stress in the system.