Synopsis
The presence of myriad supply constraints, both temporary and permanent, often means that there are periodic spurts in some prices that pushes up headline inflation. These supply problems could show up in items as diverse as onions and healthcare. Flexibility must remain the cornerstone of the new framework.
By Abheek BaruaReserve Bank of India (RBI) will soon have a new Monetary Policy Committee (MPC) deciding the future of interest rates. RBI has also been reviewing its current monetary policy framework. So, we may have a new committee at the helm with a new mandate. To identify the issues a revamped model needs to address, a quick review of the problems with the current structure may be useful. Some of the ‘flaws’ have emerged not in the mandate
- FONT SIZE
AbcSmall
AbcMedium
AbcLarge
To Read the Full Story, Become an ET Prime Member
Sign in to read the full article
You’ve got this Prime Story as a Free Gift
Access the exclusive Economic Times stories, Editorial and Expert opinion
Already a Member? Sign In now
Why ?
Sharp Insight-rich, Indepth stories across 20+ sectors
Access the exclusive Economic Times stories, Editorial and Expert opinion
Clean experience with
Minimal AdsComment & Engage with ET Prime community Exclusive invites to Virtual Events with Industry Leaders A trusted team of Journalists & Analysts who can best filter signal from noise
