Given all the uncertainties and risks, it does not make sense to think a single, optimal path for our policy interest rate will be consistent with achieving our inflation target. It makes no sense to try to engineer such a path with precision.
A case in point is the preparedness of banks for the risk based supervision (RBS) process that was launched in the current supervisory cycle commencing from April 2013.There has been a measured approach behind bringing in roughly 30 banks under the RBS ambit.