The tight monetary policy stance of the Bank along with the “massaging” of the exchange rate of the rupee in a highly imperfect market gave the country, for the first time in its history, four successive years of current account surpluses in the initial years of the new millennium.
Governing Council reasoned that the Bank’s presence in the secondary corporate bond market would ease some of these strains and announced a $ billion purchase program aimed at high-quality corporate borrowers.