6  BIS central bankers’ speeches  preceded the conventional measures of policy rate cuts. Second, while central banks in EMEs relied mostly on direct instruments such as reserve requirements to ease domestic liquidity, central banks in advanced countries resorted to various liquidity providing operations through relaxation of counter-parties, collaterals and maturity.
The fiscal expansion to deal with the adverse impact of the global financial crisis and the reduced tax buoyancy on the back of a relatively slowed-down economy has left the fiscal position in a less than optimal state. The inflationary pressure continues. Most importantly, the current account deficit has burgeoned to 4.6% for the last Fiscal.