We are also benefiting from these lag effects of the previous measures: targeted liquidity tenders, forward guidance, low interest rates. It is all feeding into the economy at a slow pace, so it is certainly too early to measure the full extent of what we have done over the last couple of years. So, is it premature to start thinking about another QE programme?
Our inspection of banks’ books has highlighted need for the banks to have more robust policies for risk mitigation on account of un-hedged foreign currency exposure of corporate entities. Inadequacies of data further complicate the impact assessment of such exposures across the banking system.