Tuesday, August 5, 2014

Decoding RBI’s inflation dilemma: India may have to wait longer for a rate cut

.........The RBI, during the regime of Duvvuri Subbarao, has all along maintained that the RBI cannot be an inflation targeting central bank unlike those of countries like New Zealand and Chile. Rajan too has maintained the same stance and has refused to admit that he has embraced an inflation target, but in reality, the central bank has quietly moved to inflation targeting already. That’s where the problem lies............

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