Indeed, it became an attractive source of financing Government expenditures since it was available at an interest rate pegged at 4.6 per cent per annum since 1974, i.e. actually at a negative real interest rate. The assault on ad hoc Treasury bills 5.
The Committee to Review the Working of the Monetary System recommended that the Reserve Bank adopt a system of monetary targeting with feedback. The target is to be BIS Review 28/1997  -2-  fixed taking into account the growth of the real sector and an acceptable order of increase in prices.