slack in demand and supply - side shocks to inflation for timely use of counter cyclical policies. 26. we, in the reserve bank, therefore, constantly update our assessment of the economy based on incoming data and survey based forward looking information juxtaposed with modelbased estimates for policy formulation. this approach helped the reserve bank to use the policy space opened up by the expected moderation in inflation and act early, recognizing the imminent slowdown before it was confirmed by data subsequently. monetary policy, however, has its own limits. structural reforms and fiscal measures may have to be continued and further activated to provide a durable push to demand and boost growth. in my previous talks elsewhere, i have highlighted certain potential growth drivers which, through backward and forward linkages, could give significant push to growth. some of these areas include prioritising food processing industries, tourism, e - commerce, start - ups and efforts to become a part of the global value chain. the government is also focusing on infrastructure spending which will augment growth potential of the economy. states should also play an important role by enhancing capital expenditure which has high multiplier effect. concluding remarks 27. monetary policy frameworks in india has thus evolved in line with the developments in theory and country practices, the changing nature of the economy and developments in financial markets. within the broad objectives, however, the relative emphasis on inflation, growth and financial stability has varied across monetary policy regimes. although global experience with financial stability as an added policy objective is still unsettled, the reserve bank has always been giving due importance to financial stability since the enactment of the preamble to the rbi act. the regulation and supervision of banks and non - bank financial intermediaries has rested with the reserve bank and has kept pace with the prescribed global norms over time. more recently, the focus of financial stability has not only confined to regulation and supervision but also extending the reach of formal financial system to the unbanked and unserved population. 28. apart from financial inclusion, there is also a focus on promoting secured, seamless and real - time payments and settlements. this renewed focus on financial inclusion and secured payments and settlements are not only aimed at promoting the confidence of general public in the domestic financial system but also improving the credibility of monetary policy for price stability, inclusive growth and financial stability. 6 / 6 bis central bankers'speeches

benoit cœure : interview in le journal du dimanche interview with mr benoit cœure, member of the executive board of the european central bank, in le journal du dimanche, conducted by ms bruna basini on 27 october, and published on 29 october 2017. * * * the reduction in liquidity decided by the ecb is so accommodative that one might wonder if it has become impossible to wean the markets off this source … we ’ ve decided to halve our asset purchases. from january to september 2018 we will buy €30 billion worth of bonds per month instead of €60 billion, as at present. and our interest rates will remain unchanged. the ecb ’ s monetary policy will remain very accommodative : in particular, our asset purchases will continue until inflation clearly moves towards 2 %. this recalibration takes account of the solidity of the recovery and allows it to gain strength. i am hopeful that this will be the last extension. don ’ t we have to fear negative effects? we are aware that this policy could create risks on the financial markets. but its first effect is to further stimulate consumption and investment, and to support the fall in unemployment. there ’ s no financial bubble at euro area level. there are price tensions on real estate markets in some countries. in france, corporate debt is also rising very quickly, perhaps too quickly. but nothing at this stage demands action from the ecb. how will this policy affect interest rates? the ecb ’ s policy will enable households and firms to continue borrowing at historically low levels. the short - term rates set by the ecb are going to remain very low for quite some time, well past september 2018. as for long - term rates, they are set by the financial markets. these rates can be expected to rise as the global economic recovery proceeds. businesses and governments must prepare for that. prices are not rising very much, wages even less so, whatever happened to inflation, which is levelling off at around 1. 5 %? in europe wages have tended to stand still because we ’ ve endured one blow after another, the financial crisis, then the euro area crisis. one young person in five is unemployed in the euro area. it ’ s no surprise that this affects wages. the nature of the jobs created has also changed. there are many fixed - term and part - time jobs which keep employees in a position of dependence. as the