Based on this assessment, we have been realizing the idea of "adjusting the level of interest rates gradually in the light of developments in economic activity and prices." With inflationary pressures weak, the pace of adjustment has been slow and the accommodative financial conditions ensuing from very low interest rates have been maintained.
Stepping beyond the banking sector and looking at other core areas of functioning of the central bank, such as foreign exchange reserves management and payments systems also suggest several homegrown practices which are now being regarded as the international best practises. 6. Let me begin with prudential regulations. Statutory liquidity ratio1 and liquidity coverage ratio2 7.