.................Earlier, under the old management, there was talk about the new normal of 6.5 per cent. It was criticised and there was no subsequent official reference to the idea. One hopes the Central bank will stick to the level of 5 per cent even though it too is high for a poor country with millions struggling to make ends meet. There is an anomaly in this. The policy is to keep the real effective exchange rate stable. Western countries and Japan have adopted a range of 2-3 per cent as the targeted inflation rate. If our rate is more than that by two to three points, would it not come in the way of maintaining the real exchange rate for the rupee?.............
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