The transition to fixed-rate tenders with full allotment of all bids  BIS Review 59/2009  3  decided upon in October 2008, together with a widening of the collateral framework in our refinancing operations, ensured that all banks received the liquidity they needed at the interest rate deemed appropriate from a monetary policy perspective.
The escalation of the financial market turmoil from mid-September onwards and the global shock to confidence led to a considerable change in the outlook for the real economy and price stability changed. Against this background, the Governing Council of the ECB has lowered its main policy rate decisively since October 2008 from 4.25% to 1%.