Furthermore, this widening could occur without necessarily invoking the pre-existing power to do so in circumstances where the Governor declares a situation of severe and unusual stress on a financial market or financial system. 11  At times, the Bank also carried out sale and repurchase agreements. BIS Review 42/2008  7  assumed.
As well, we stated that there could be a more prolonged slowdown in the U.S. economy. Given the situation, we lowered our policy rate by 25 basis points. In our 4 March policy rate announcement, we indicated that deterioration in economic and financial conditions in the United States could be expected to have significant spillover effects on the global economy.