Raghuram Rajan: RBI Cannot Ditch Inflation to Focus on Growth

Raghuram Rajan hoped his successor produce a low-inflation future for us

India’s RBI Governor Raghuram Rajan. (Photo: Reuters)

Within days of announcing his decision to leave RBI in September, Governor Raghuram Rajan on Monday hoped his successor and the new monetary policy committee will “stay the course” to ensure a low-inflation future for the country.                

“In the days ahead, a new governor as well as members of the monetary policy committee (MPC) will be picked. I am sure they will internalise the frameworks and institutions that have been set up, and should produce a low-inflation future for us,” Rajan said.

The government has taken the “momentous step” of both setting a consumer price index-based inflation objective for the Reserve Bank as well as setting up an independent monetary policy committee (MPC), he said.