Within the Reserve Bank’s monetary policy framework, the supply of ES balances is effectively market-determined. That is, the Reserve Bank stands ready to supply whatever quantity of ES balances is necessary (against eligible collateral) to keep the cash rate trading at the Board’s target. In normal times, and even at times like the present, the demand for ES balances is very low.
This would not only benefit the euro area, it would also create positive spillovers for the rest of the world.