Is there Scope for further Monetary Policy Relaxation to Boost Growth?

Overheating to Cooling-off
The growth momentum in the economy has slowed sharply, since 3Q 2012. As mentioned in previous Pathfinder Foundation (PF) articles, this is reflected in reduced government revenue, imports, electricity sales and company profits. Such a slowdown in growth has been an inevitable consequence of the stabilization measures introduced in Feb/March 2012. These became necessary to address the overheating of the economy, which was reflected in elevated inflation and balance of payments imbalances which exerted pressure on the currency/reserves.