And as expected, we too have confronted the classic communication dilemma. Let me illustrate. In the Second Quarter Review of early November 2010, we had said: “Based purely on current growth and inflation trends, the Reserve Bank believes that the likelihood of further rate actions in the immediate future is relatively low.
There is a distinct risk that in trying to stay ahead of innovation, regulation may get so stringent that it stifles innovation. This is a risk we must guard against. 4. The second lesson relates to the inter-agency coordination.