Contributing to the disinflationary pressures that have been evident in the global economy over the past decade or more has been the integration of in excess of 100 million educated workers from the former Soviet bloc into the world's open trading system. More recently, and of even greater significance, has been the freeing from central planning of large segments of China's 750 million workforce.
Second, the BSP was among the central banks in the world that immediately responded to the crisis by deploying a set of comprehensive measures. The Monetary Board cut the policy rate by 200 basis points and the reserve requirement by another 200 basis points. As a result of this bold, timely, and decisive action, the country’s interest rates hit a historic low.