The anti-inflationary thrust of monetary policy became unavoidable to contain inflation and anchor inflationary expectations. Table 1 Post-crisis as growth recovered inflation picked up  2  BIS central bankers’ speeches  In the fourth phase, softening of inflation created space for monetary easing. However, growth is yet to pick up reflecting both weak global demand, domestic supply constraints and slowdown in corporate investment.
In this context, the role of monetary policy has also come to the fore: the question being to what extent monetary policy has played a role in the growth slowdown? Let me try to address this issue. Monetary policy transmission While there is considerable attention even to small changes in policy interest rate, the question is: does this really matter?