RBI Executive Director weighs financial stability objective

.....Deepak Mohanty, an Executive Director at the Reserve Bank of India, delivered a speech on June 27 in which he discussed the importance of financial stability as an element of central bank mandates, but argued that price stability should remain the first priority. Speaking at a Central Bank of Nigeria board retreat in Cape Town, Mohanty said that the recent crisis has underlined the importance of central banks' financial stability role. However, "the challenge for a central bank is to achieve multiple objectives without losing credibility as a monetary authority solely responsible for price stability," he said..................

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