To provide necessary inputs to the Advisory Panels, it has been decided to set up Technical Groups comprising mainly of Officials directly working in respective areas of regulatory institutions. Finally a few comments on reforms in financial markets Well developed financial markets enable the central bank to effectively conduct monetary policy and help in improving the allocative efficiency of resources.
Growth in consumer spending is still hesitant, owing to the uncertain prospects for employment and the slow increase in households’ income. Monetary policy has continued to be firmly directed to stabilizing inflation. Consumer price inflation fell below 1.5 per cent on a seasonally adjusted annual basis in the second half of 1996 and remained at that level until the summer of 1997.