A recent IMF working paper 2 on Price and Income Elasticity of Indian Exports has concluded that Indian goods exports are sensitive to external demand and to international relative price-competitiveness. Manufacturing sector exports are estimated to be more price elastic and sensitive to global demand developments in the short-term.
The Bank actively participates in the shaping of the Basel III framework for liquidity risk measurement, standards and monitoring. Taking due account of current regulatory developments, the BCL intends to publish further instructions to market participants on liquidity management before the end of this year.