To begin with all special liquidity measures were withdrawn which was followed by hikes in policy rates – LAF repo and reverse repo rates have been raised by 200 basis points and 250 basis points, respectively. The CRR has also been raised by 100 basis points to 6.0 per cent now.
The process of fiscal consolidation resumed in 2010–11 is expected to be further strengthened in 2011–12. Thus, while the magnitude of the crisis was global in nature, the policy responses in India were adapted to domestic growth outlook, inflation conditions and financial stability considerations.