consultative process also helps in managing expectations. growth - inflation performance as i mentioned, monetary policy framework in india shifted from a monetary targeting regime to a multiple indicator regime. such a transition was conditioned by the developments of financial markets, increasing integration of the indian economy with the global economy and changing transmission of monetary policy. a pertinent question is how did this transition impact economic outcomes, in particular the growth - inflation performance? bis central bankers ’ speeches from table 1, two broad trends can be gleaned. first, real gdp growth, on an average, improved over the period and became less volatile. second, inflation performance had improved significantly in the last decade coinciding with the adoption of multiple indicator approach. however, inflation performance deteriorated in the years 2010 - 11 and 2011 - 12 so far. in this context, it is important to recognise that the recent inflation surge has followed the global financial crisis. managing inflation in an economy which is recovering from a downturn is much more complex because of associated uncertainties than managing inflation under normal conditions. in the initial phase of the crisis in 2007, it appeared that emerging market economies ( emes ) were better positioned to weather the storm created by the global financial meltdown on the back of their substantial foreign exchange reserve cushion, improved policy frameworks and generally robust banking sector and corporate balance sheets. however, any hope about emes escaping unscathed could not be sustained after the failure of lehman brothers in september 2008 which triggered global deleveraging and heightened risk aversion. eventually, emes were also adversely affected by the spillover effects : first through contraction in world trade and then from reversal in capital flows. india, though initially somewhat insulated from the global developments, was eventually impacted significantly by the global shocks through all the channels – trade, finance and expectations channels. in response, the reserve bank swiftly introduced a comprehensive range of measures to limit the impact of the adverse global developments on the domestic financial system and the economy. the reserve bank, like most central banks, took a number of conventional and unconventional measures to augment domestic and foreign currency liquidity, and sharply reduced the policy rates. in a span of seven months between october 2008 and april 2009, there was unprecedented policy activism. for example : ( i ) the repo rate was reduced by 425 basis points to 4. 75 per cent, ( ii ) the reverse repo rate was reduced by 275 basis points to 3. 25 per cent, ( iii ) the cash

##th anniversary this year, its role and work remain absolutely critical in the current complex global environment. the fund's multilateral and bilateral surveillance function remains as important as ever in protecting member countries from crises, and the upcoming comprehensive surveillance review will help establish the most relevant priorities for years to come. we welcome the recent decisions to strengthen the imf's lending toolkit as part of the review of charges and the surcharges policy and the review of the poverty reduction and growth trust facilities and financing. we support the imf's position at the centre of the global financial safety net, with a strong core mandate, and we highly value its unique role in bridge - building and facilitating global cooperation to tackle common challenges. we welcome the fact that sub - saharan africa will shortly occupy the newly created seat on the imf's executive board, which will significantly contribute to improving the overall balance of regional representation. we continue to witness an increase in economic losses and financial risks stemming from extreme physical climate hazards, including record - breaking heatwaves in asia, devastating floods and wildfires in the americas and central and eastern europe, and more frequent tropical storms in the caribbean and south asia. adaptation measures to shield our lives and economies from the impact of climate change, alongside ambitious policies to put the climate transition on track, are more relevant than ever. we support international progress on transition planning, enabling corporations, financial institutions and governments to set up credible net - zero roadmaps in a systematic way. furthermore, it is essential to further develop more systematic and comprehensive approaches to assess the impact of escalating nature - related economic and financial risks on price and financial stability, including integrated climate and nature risk analyses. 4 / 4 bis - central bankers'speeches