Over the course of the crisis, we learned that relying on the interest rate instrument alone could lead to perverse results and unintended consequences. For example, keeping rates low for too long could lead to excesses in certain segments of the market.
While, we will make sure policy rate settings are pre-emptive and calibrated, we will also continue to use the full range of macroprudential measures available to us to enhance the economy’s resilience against systemic shocks and deter the build-up of aggregate risks.