RBI can’t be inflation targeter: Subbarao

The Reserve Bank said that it cannot work as inflation targeter,as it will not serve the best interest of macroeconomic management

Written by Press Trust Of India | Mumbai | Published: February 3, 2012 1:09 am

The Reserve Bank today said that it cannot work as inflation targeter,as it will not serve the best interest of macroeconomic management. “The Reserve Bank can’t be an inflation targeter,or a core inflation targeter. That will not serve the best interest of the macroeconomic management of the country,” RBI Governor Duvvuri Subbarao said at the two-day Second International Research Conference,organised by the Bank,here.

He also maintained that central bank,which hiked policy rates a record 13 times last year to tackle inflation,cannot pursue a policy completely oblivious to growth.

Subbarao,however,said that in the past 60 years no government was insensitive to inflation,and inflation management usually takes precedence over growth concerns.

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