In this context, Governing Council decided to raise the policy interest rate by one quarter of a percentage point to 1.25 per cent. The data we have received since October have been generally stronger than expected. Growth around the world continues to strengthen and broaden, supporting the expansion here at home.
Capital controls were lifted in October and domestic reserve requirements were reduced in November. Liquidity provision was increased substantially as reflected by the negative and decreasing spread between the overnight interbank interest rate and the policy rate as the end of the year approached (Chart 6). Finally, policy rates were lowered by 50 bps in December, the first such move among emerging economies.