The Reserve Bank, like most debt managers around the globe, was confronted with a highly expanded borrowing programme of the Government. Through various measures, the Reserve Bank completed the borrowing programme in a non-disruptive manner and also created congenial conditions for other segments of the financial market such as the corporate bond market.
Headline inflation rates rose significantly in early 2011 due to energy and commodity price increases, and the balance of risks to the inflation outlook shifted to the upside.