The signals for monetary policy easing had set in from late 2011, after a pause was given to continuous hikes in policy rate by more than 300 bps. The rates had touched a level of 8 per cent. From early 2012, there were signals for aggressive easing, first by steep cuts in CRR by 125 bps and a hefty and totally unexpected cut in policy rate by 50 bps in mid-April.