And as expected, we too have confronted the classic communication dilemma. Let me illustrate. In the Second Quarter Review of early November 2010, we had said: “Based purely on current growth and inflation trends, the Reserve Bank believes that the likelihood of further rate actions in the immediate future is relatively low.
However, in an uncertain world, we need to be prepared to respond appropriately to shocks that may emanate from either the global or domestic environment.” 22. Many analysts commended us for the forward guidance, but a few thought that we were imprecise on the conditionality as well as on the time horizon implied by “immediate future”.