Since then, the ECB and other major central banks in Europe and across the world have reacted promptly and consistently during the various phases of the market turbulences, in order to ensure the smooth functioning of the money market. Cooperation among central banks at the global level has been essential in this respect.
Despite stickiness in the nominal interest rate, the reduction in the real rate was higher as inflation on an average turned out to be higher. However, in 2012–13 as inflation showed a significant moderation the real lending rate has risen. Why did the investment growth slacken despite moderation in real lending rates?