RBI inflation goals need to be reviewed, says prime minister's adviser

We need to decide what sort of macroeconomic framework we want going forward, said Rathin Roy

India's new government should review the central bank’s inflation goals, including whether consumer prices or the underlying core measure is the appropriate target to use to determine interest rates, an economic adviser to the current prime minister said.

Speaking in his personal capacity, and not as a member of Prime Minister Narendra Modi's Economic Advisory Council, Rathin Roy said the Reserve Bank of India’s inflation target should be relooked at after the elections, given that the current mandate expires at the end of March 2021. The RBI's goal is to keep inflation at 4 percent over the medium term.

“We