RBI will have to be more synchronised with fiscal policy, other factors to tame inflation: FM Nirmala Sitharaman
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In order to tame inflation, Finance Minister Nirmala Sitharaman has said that the Reserve Bank of India (RBI) will have to be more synchronised with the fiscal policy and other factors. She further said that inflation management cannot be singularly left to the monetary policy, which has proved totally ineffective in many countries.
Sitharaman further noted that there are economies where policy is designed in such a way that the monetary policy and the interest rate management is the one and the only tool to handle inflation. She said ‘I would say India's inflation management, the word taming inflation or the word keeping it within the tolerance limit is an exercise of so many different activities and majority of which is outside of the monetary policy given in today's circumstances.’
Besides, Finance Minister Nirmala Sitharaman said that there could have been a time when people would have thought this is sacrilegious for the finance minister of a country to say so.
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