Initially, monetary transmission was weak as systemic liquidity was in surplus. But once liquidity turned into deficit in July 2010, monetary transmission improved. Fifth, since October 2009, the cash reserve ratio (CRR) has been raised by 100 basis points. The policy repo rate has been raised by a cumulative 325 basis points.
Faced with uncertainty about such variables, investors have incentives to delay their irreversible investments in order to wait for more information which will reduce that uncertainty. This is known as the option value of waiting.