As these measures substitute for the intermediation function of the markets, we can probably say that a central bank’s Lender of Last Resort function has evolved to encompass the role of Market Maker of Last Resort. b. Global Lender of Last Resort  The recent global financial crisis demonstrated that systemic risk can spill over across national borders and have a global dimension.
This allowed for an unchanged repo rate of 7 per cent for a prolonged period following the reduction by 50 basis points in April 2005. In the past year, there were a number of developments that supported a favourable inflation outcome. Lower inflation expectations appeared to have had an impact on wage settlements which have declined steadily.