As the expected growth rate rises, monetary easing will more significantly boost the willingness of firms to invest and households to consume, thereby further ensuring the path toward achieving the price stability target of 2 percent. Thus, there are synergy effects between efforts by various economic entities and the Bank's monetary policy.
Stamp duty laws need to be rationalised to provide an incentive to issuers and work is already on in this direction. Use of corporate bonds a collateral 24. Post Global Financial Crisis has seen large scale use of non-sovereign papers as collateral by the central banks for providing liquidity during periods of stress.