Let me now turn to some of these issues. How fast does the central bank communication influence the market? An interesting illustration of the impact of central bank communication is perhaps the episode in stock market on May 17, 2004.
On this day, in the wake of change of Government, stock markets in India witnessed a record fall in price, which triggered the index-based circuit breaker twice during the day. The index-based circuit breaker triggered for the first time at 10:16 AM when the Sensex touched a low of 4516.