..............Inflation expectations can simply be defined as economic agents’ perception about future inflation. Central banks intend to achieve low and stable inflation where inflation expectation is well anchored. “…a steady and low inflation combined with well-anchored inflation expectations helps the monetary authority in achieving the other objectives of monetary policy, such as economic growth and financial stability,” said Deepak Mohanty, Executive Director, Reserve Bank of India (RBI), in a speech on the subject in November 2012..........
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