The progressive tightening of short-term financial markets during the second half of 2007 and through 2008, peaking in those dramatic weeks after the bankruptcy of Lehman Brothers, eventually exposed the fact that, not only had the banks fuelled an unsustainable property bubble, but they had not safeguarded their own solvency through adequate collateral and guarantees.
We cut policy rates by 25 basis points as early as February as a pre-emptive move against the impact of the pandemic. To date, we have cut policy rates by a cumulative 175 basis points. In addition, we cut reserve requirements by 200 basis points.