Within days of announcing his decision to leave Reserve Bank of India in September, Governor Raghuram Rajan today hoped his successor and the new monetary policy committee will “stay the course” to ensure a low-inflation future for the country.
6:01 pm: In the days ahead, a new governor, as well as the members of the monetary policy committee will be picked. I am sure they will internalise the frameworks & institutions set up, & should produce a low inflation future for India: Raghuram Rajan
5: 57 pm: Best way monetary authority can support growth over medium term is to anchor inflation at low levels so policy rates can also be low: Rajan
5: 56 pm: An inflation-focused framework means better coordination between govt & central bank as they go towards common goal of macro stability: RBI
5: 54 pm : As we move towards embedding institutions that result in sustained low inflation & +ve real interest rates this requires all constituencies to make adjustments: Raghuram Rajan
5: 52 pm: We got used to decades of moderate to high inflation, with industrialists and govt paying negative real interest rates and the burden of the hidden inflation tax falling on the middle class saver and the poor: Raghuram Rajan
5: 50 pm : We intend to ensure these frameworks and institutions work as they should in producing a low inflation future for India: RBI
5: 47 pm: GoI has taken the momentous step of both setting a CPI based inflation objective for the RBI as well as setting up an independent MPC: RBI
5: 45 pm: RBI Governor Raghuram Rajan says monetary policy committee a revolutionary step in fight against inflation.
5: 40 pm : Investors have gained confidence in our monetary policy goals which will only improve as we meet our inflation goals, says Rajan.
5: 35 pm: RBI can never abandon inflation to focus on growth: Rajan.
5: 30 pm : By focusing on low inflation, we are abandoning old ways that benefited the few at the expense of majority poor: Rajan.
5: 25 pm : Rajan confident govt, new RBI chief will internalise frameworks and institutions that have been set up and ensure low inflation future.