The criticism from the other side has been that the Reserve Bank has been soft on inflation, the baby step approach we followed – of  BIS central bankers’ speeches  1  increasing policy interest rates by 25 bp each time – was not deterrent enough, and that the persistence of inflation is a result of our delayed response.
This may not completely match the picture painted by the media. The reason is that the figure conceals very strong variation between growth rates in various parts of the world. After a slowdown in 2001 and the beginning of 2002, the USA has achieved annual growth of 3-4 per cent.