Need originality to lift economy

RBI took the market by surprise by raising the repo rate by 0.25 per cent to 8 per cent. But to those who have followed the recommendations of the Urjit Patel Committee (UPC), the measure will be seen as consistent with the RBI's declared target of bringing headline CPI inflation to below 8 per cent, and within its comfort zone. As an 'inflation targeter' which is now its official position, the RBI has, with this move, tried to move ahead of the curve of inflationary expectations.

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