 "Tweaking the inflation targeting mandate")
World over, doubts are being raised about the effectiveness and even relevance of the inflation targeting mandate of central banks. Central banks have faced criticism for failing to correctly judge and predict the interest rate-inflation dynamics during the post-Covid period.
Take the Indian case. The Reserve Bank of India (RBI) kept the interest rates quite low during 2020-21 and 2021-22. Inflation had conspicuously started raising its head by the middle of 2021-22, but was considered transitory by the central bank and ignored. Then, all of a sudden, in May 2022, the RBI began one of the steepest interest rate-raising cycles in
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