In the meantime, economic uncertainty will remain heightened and international mobility restrictions will continue. Confidence and investment will be needed to sustain economic performance. For this reason we have retained a stimulatory monetary stance. 8 Reserve Bank February 2021 Monetary Policy Statement  6  Given this elevated uncertainty, at the Bank we are still operating with scenarios in mind rather than predictions.
The TLTRO addressed the need for significant stimulus during the pandemic, strengthening the transmission of rates to the economy via banks. But now the environment has changed completely – and we need to ensure that the lower cost of funding the TLTRO created for banks does not impede monetary transmission when policy normalisation is required.