Over the past year, we have taken forceful actions to tighten the stance of monetary policy. We have covered a lot of ground, and the full effects of our tightening so far are yet to be felt. Even so, we have more work to do. Our policy actions are guided by our dual mandate to promote maximum employment and stable prices.
While forces of globalisation were able to keep goods and services inflation contained for some time, the aggregate demand pressures of the accommodative monetary started getting reflected initially in oil and other commodity prices and finally onto headline inflation.