However, there could be a spill-over effect of global developments on domestic interest rates and thus on fisc also. The fiscal position of the Government could also be indirectly impacted through the nature of management of foreign exchange reserves held by the Reserve Bank.
Ladies and gentlemen, so far, the Bank’s monetary policy has produced the intended results by moderating credit growth, improving the current account deficit on the balance of 2  BIS central bankers’ speeches  payments, and stemming the decline in reserves in the monetary union.