RBI governor versus the Patel report

The widely-awaited Patel committee report to revise and strengthen RBI’s monetary policy framework, the first of RBI Governor Raghuram Rajan’s five pillars of focus, was released recently. It recommends wide-ranging changes, significant amongst which are: a shift to flexible inflation targeting (FIT), making price stability the predominant objective ahead of growth and financial stability; adoption of headline CPI as nominal anchor (medium-term inflation target - 4% in a 2% band)...

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