Nevertheless, I would have made smaller forecast errors if I had used an estimate of NAIRU a bit below my current estimate of 5½% and would have made a smaller error forecasting inflation if I had used a slightly higher estimate of trend growth. The experience in 1997 did not put to rest these questions.
With respect to public sector banks, by way of amendments, similar powers have been vested in the Central Government, which has the majority shareholding in those banks. The shareholding pattern also plays a vital role with respect to the management of banks and, therefore, it is necessary that shareholders having sizeable holding should also be fit and proper.