MUMBAI (Reuters) - A Reserve Bank of India (RBI) panel on Tuesday recommended that monetary policy be set by a committee and that consumer price index (CPI) inflation be used to set an inflation target, eventually of 4 percent.
The panel's report also said it should be made clear that managing inflation is the central bank's primary objective.
The recommendations of the panel, which was established by RBI Gov. Raghuram Rajan when he took office in early September, are widely expected to be adopted by the Indian central bank.
Under current RBI practice, the power to make policy decisions is held solely by the governor. The RBI, unlike many central banks, has long used wholesale price index (WPI) inflation as its primary guage.
(Reporting by Suvashree Dey Choudhury and Neha Dasgupta; Editing by Tony Munroe)
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