In this context, administered interest rates fixed by the Government on a number of small saving schemes and provident funds are of special relevance as they have generally offered a rate different from those on corresponding instruments available in the market, in some cases along with tax incentives. The administered interest rates significantly impact the level and allocation of savings.
Cross-border financial linkages and monetary policy Cross border financial linkages can present difficult challenges for monetary policy for two main reasons. First, although the exchange rate is often the primary transmission channel for monetary policy, this channel is often stronger than we would wish.