The Reserve Bank’s policy measures were aimed at containing the contagion from the outside – to keep the domestic money and credit markets functioning normally and ensure that the liquidity stress did not trigger solvency cascades. As in the case of other central banks, both conventional and unconventional measures were undertaken.
The conventional measures included, first, a sharp reduction in the policy interest rates – the effective policy  BIS central bankers’ speeches  9  rate was cut from 9 per cent (repo rate) in September 2008 to 3.25 per cent (reverse repo rate) in April 2009.