At a function in Mumbai to launch a book written by former Deputy Governor of the Reserve Bank of India Rakesh Mohan, a question was posed to former Governor YV Reddy. “Why is it that RBI banks on historical data to draw up monetary policy, why doesn’t it take into account trends that could emerge in the future?” someone from the audience wanted to know. “The future is uncertain and, therefore, it wouldn’t always be prudent to base policies on that,” Reddy explained, before adding, “But for Governors like Subbarao, the task is even more difficult because even the past is uncertain with the data constantly being revised!”
FE
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