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It is said that a week is a long time in politics. And 10 weeks seem long enough for the assumptions of economic policy to be overturned.

Indian financial sector regulators met with the finance ministry on 9 August as part of the new Financial Stability and Development Council. The central bank has released the abridged minutes of that meeting for the first time.

The minutes reveal concerns about the emerging risks to the Indian economy because of costlier global oil, following the turmoil in West Asia, as well as the prospects of higher US interest rates next year.

Much has changed since then.

Global oil prices have tanked. And while the US may still begin to tighten monetary policy next year, there is parallel chatter that the weak recovery may force it to postpone the inevitable.

The local worries remain: the financial health of banks as well as the sharp rise in the sale of bad loans by banks to asset reconstruction companies.

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