BIS Review 51/2007  17  Summing up The Reserve Bank has taken a keen interest in the development of the money, the government securities and the foreign exchange markets in view of their critical role in overall growth and development of the economy and particularly in the transmission mechanism of monetary policy.
In the same way, because our policy decisions are exclusively based on our assessment of risks to price stability, our responses can be predicted by fiscal authorities. The channels for the exchange of information between fiscal and monetary authorities are also well developed. But there cannot and will not be any precommitment to a particular course of monetary policy action.