The cut was effected against a backdrop of rising inflation, from 2.9 per cent year-on-year in January 2013 to 3.7 per cent in May, the latest data point available to the June MPC meeting. We ended the year with year-on-year inflation at 4 per cent in December. (More on this issue) 30.
Among others, this led to two parallel movements – one in South Asia in the form of the SAARC Initiative and the other in East Asia reflecting the ASEAN+3 Initiative. The idea of having an integrated financial system so as to provide viable ‘safety net’ in times of crisis germinated. As a result, the idea of “ASEAN + 3” Initiative1 gained prominence.