Recent months have shown that a credible ex ante commitment helps to establish a good market equilibrium, where higher yields do not drive spreads to higher levels that are disconnected from fundamentals. We also need to stand ready to address collateral issues. Collateral scarcity has recently impaired the pass-through of our policy rates to repo rates.
11. In closing, let me say a few words about India. Real GDP growth is expected to clock 7.2 per cent during 2019–20, the fastest among large economies of the world, growing by an average rate of around 7.5 per cent in recent years.