Developments in the financial and capital markets, the behavior of financial institutions, and the situation of corporate finance continue to require close monitoring.
Monetary policy  Recent monetary policy should be seen against the backdrop of the developments outlined above. Between June and December of 2003, the repo rate was reduced by 550 basis points, bringing the  4  BIS Review 28/2004  repo rate to 8,0 per cent, the lowest nominal level for this interest rate or its predecessor, the Bank rate, since 1980.