Equity prices have gone up, lowering the cost of equity for both non-financial corporations and banks. As to the recent general reversal in financing conditions and volatility, the Governing Council was unanimous in its assessment in June that we should look through these developments and maintain a steady monetary policy stance.
2  In fact, if we focus on manufacturing exports which are perhaps less susceptible to high frequency price movements, based on limited data for recent years we find that the magnitude of the slowdown in India over the last few years is comparable or even less than many emerging markets.