For example, both countries often adjust the reserve requirements to control inflation, while China also uses window guidance, credit volume controls, and deposit-to-loan ratio requirements. The reserve requirement is regarded as a liquidity-based measure under macroprudential policy and is frequently used by many emerging economies as a counter-cyclical measure against business and financial cycles.
To give you an idea of the extraordinary circumstances that we experienced since 2008, in Britain, the Bank of England’s base rate had historically remained above 2 per cent for 315 years, from its foundation in 1694 until 2009.