[4] Central banks responded by reducing policy rates rapidly to very low levels. Some of these actions were coordinated in a hitherto unprecedented manner. Central bank balance sheets expanded rapidly (Graph 4). The re-intermediation by central banks mitigated the withdrawal of intermediation by the banking sector. A part of that increase in the balance sheet addressed the large counterparty risk aversion.
In their respective country assessments, the rating agencies, Moody’s and S & P Global Ratings, also emphasise this last point, namely, the need for a dynamic and expanded role of the private sector in the economy, to achieve economic diversification and inclusive growth.