On the one hand, the current positive cyclical momentum increases the chances of a stronger than expected economic upswing. On the other hand, downside risks primarily relating to global factors continue to exist. The thread of deflation is gone and reflationary forces are at play.
In reducing the outstanding balance of current accounts, the Bank will need to monitor financial market conditions carefully, because the outstanding balance of current accounts at the Bank has been exceeding substantially the amount of required reserves for a long period of time.