The Federal Reserve lowered the federal funds rate gradually from 2001 in response to economic developments, and it has accordingly declined from 6.5 percent at the start of 2001 to 1.25 percent.
The European Central Bank (ECB) also gradually reduced the main refinancing operations rate from 4.75 percent at the beginning of 2001 to 2.5 percent, followed by a further reduction to 2.0 percent on June 5, 2003. In line with such monetary policy developments, central banks overseas sometimes refer to the risks of price declines in their statements.