Govt, RBI to create monetary framework for central bank: Rajan
08/09/2014 07:04
According to RBI governor Raghuram Rajan, the government and the Reserve Bank of India have planned to formulate a monetary framework for the central bank that lays more emphasis on inflation, reported PTI. "This year the government and the RBI will negotiate together to formulate a monetary framework for the RBI...the idea is to move towards an objective which has much more emphasis on inflation," Rajan said in a speech in Chicago. He said the focus for the RBI has been on controlling inflation and on creating a sound monetary framework, said the media report. Rajan reiterated that RBI is aiming to bring down the headline number to 8 per cent by end of this year and to six per cent by the end of next year. "After that the framework will start kicking in and the government will determine what level it wants inflation at, through some kind of act," he said. Rajan also noted that India is finally seeing growth improve, with the country's GDP growing to 5.7 per cent in the last quarter up from about 4.6 per cent a year ago. He, however, cautioned that while this growth is "reassuring" there still tremendous room for further improvement.
08/09/2014 07:04
According to RBI governor Raghuram Rajan, the government and the Reserve Bank of India have planned to formulate a monetary framework for the central bank that lays more emphasis on inflation, reported PTI. "This year the government and the RBI will negotiate together to formulate a monetary framework for the RBI...the idea is to move towards an objective which has much more emphasis on inflation," Rajan said in a speech in Chicago. He said the focus for the RBI has been on controlling inflation and on creating a sound monetary framework, said the media report. Rajan reiterated that RBI is aiming to bring down the headline number to 8 per cent by end of this year and to six per cent by the end of next year. "After that the framework will start kicking in and the government will determine what level it wants inflation at, through some kind of act," he said. Rajan also noted that India is finally seeing growth improve, with the country's GDP growing to 5.7 per cent in the last quarter up from about 4.6 per cent a year ago. He, however, cautioned that while this growth is "reassuring" there still tremendous room for further improvement.
