was raised from 6 to 7 per cent on May 31. Apparently, the Reserve Bank's intention is to ensure that the Bank rate change makes an impact, if at all, only on commercial bank credit to the commercial sector. This is typical of the confusion and half-heart- edness that have marked the Reserve Bank's recent forays into the field of monetary policy. The fanfare over the raising of the Bank rate suggested that the Reserve Bank viewed the Bank rate as a vital instrument of credit control