The large and rapid decline in policy rate settings in most advanced economies occurred in 2007 and 2008. Over this period, many policy rates were reduced to close to zero and subsequently, in some cases, even below zero. The collapse in global output and trade at the end of 2008 was sharp and significant.
Unwinding of temporary measures As portfolio capital outflows waned and the balance of payments (BoP) situation improved significantly, stability returned to the foreign exchange market in the second half of 2013–14. This prompted the Reserve Bank to withdraw many exceptional measures.