What was the cash rate just prior to the significant cuts during the global financial crisis?

The cash rate just prior to the significant cuts during the global financial crisis was indeed 7.25%. This rate, set by the central bank, reflects the cost of borrowing money overnight by commercial banks. Leading up to the global financial crisis, which began in 2007 and intensified in 2008, central banks were operating under a higher cash rate regime to manage inflation and economic growth effectively.

As the financial crisis unfolded, it prompted a reevaluation of monetary policy, resulting in substantial cuts to stimulate the economy. By starting the cuts from a higher base like 7.25%, the central bank aimed to provide room for economic stimulus through lower interest rates, encouraging borrowing and spending amidst the economic downturn.

The other rates listed were either too high or inconsistent with the historical context of monetary policy decisions during that period, thereby confirming 7.25% as the correct response.