The ISMA indeed describes its task as ‘regulation by the market, for the market’. In addition, private bond-rating agencies like Moody’s Investors Service and Standard & Poor’s - and the financial markets whose sentiments they reflect - have come to exercise considerable disciplining authority over many national governments.
The Bank Rate was adjusted downwards from 25.0 percent to 20.0 percent on 13th November 2006. As a result, commercial banks followed suit by adjusting both their savings and deposit rates. The reduction in interest rates should, therefore, give an opportunity to the private sector to participate in borrowing capital, thereby generating economic growth.