These measures help to preserve favourable financing conditions for all sectors of the economy and thereby underpin economic activity and safeguard medium-term price stability. We will also continue to monitor developments in the exchange rate with regard to their possible implications for the medium-term inflation outlook.
This meant we could stop draining liquidity, unwind those operations and let banks hold extra cash instead, on which they could earn the policy rate. The logic of this system is that abundant liquidity puts downward pressure on rates.