Furthermore, Indian banks have done a remarkable job in containment of NPLs considering the overhang issues and overall difficult environment. Net NPAs have now fallen to just two per cent of net advances. The external sector continues to be robust.
The joint agreement with a democratically elected government enhances the legitimacy of the price stability objective and thereby boosts its credibility. It also gives the Bank of Canada operational independence to achieve this goal. The regular five-year review, meanwhile, affords the Bank the opportunity to revisit many important aspects of our monetary policy framework and its implementation.