The high LCR denoted adequate liquidity buffers to support short-term net outflows in both domestic and foreign currencies, as well as safeguard the resilience of the banking system against liquidity strains that could impact credit flowing to the economy. The banking sector provided continuous support to the economy by ensuring constant flow of credit.
As the monetary policy responds quickly to emerging developments in the economy, and its effectiveness depends on market expectations, the set of data required for the same, like business expectations and inflation expectations, need to be collected through quick surveys. With increased globalisation and liberalisation of financial system, informed decision holds the key to successful implementation of policy.