Commentators and observers have wondered whether this concerted policy decision may be the beginning of a new era of increased international monetary policy coordination in response to economic and financial globalisation. It is important to stress that this coordinated interest rate cut was taken in a specific context and with a specific objective.
There was extraordinary uncertainty at the time about the economic outlook and strong evidence that upside risks to price stability had diminished at the global level. The coordinated cut addressed the need to respond to a common shock that was being transmitted around the globe almost simultaneously.