This evening, let me give you a flavour of how do we manage monetary policy in the Reserve Bank of India? In central banking parlance this is known as the operating procedure or the implementation of monetary policy. Essentially, it is the day-to-day management of monetary policy in pursuit of ultimate objectives of price stability and growth.
All other things equal, lower oil prices mean approximately 0.5 per cent less GDP by the end of 2020, according to our models. By convention, we use current oil prices in our projection, but there is considerable uncertainty about future oil prices and their effects.