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 cant 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.