 "reserve bank of india, rbi")
The first Monetary Policy Committee (MPC) has exited. The government and the Reserve Bank of India (RBI) will soon appoint a new MPC.
The MPC makes us look modern or, rather, western. But is it useful as anything more than a cosmetic? I wonder.
The Committee’s main job is to fix the price of the most important thing in the economy: money. It’s called the interest rate. Earlier it was the RBI governor who did it alone, more-or-less.
One of the side things the Committee does is to ‘target’ a particular rate of inflation. This rate in India is a range between 4-6
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper
