For that reason, the close link between banks and sovereigns that exists in the euro area has to be severed. Experience of the crisis years has shown that – especially in times of crisis – banks have a big appetite for sovereign bonds, preferably bonds issued by their own government.
That maybe around 5 per cent. Inflation today is above the threshold. Dr. Patel’s dictum about maintaining growth with price stability is the quintessential objective of monetary policy. •  That is something that we are deeply conscious of and that is something we are adhering to in the Reserve Bank even today. II.