Centre to amend RBI Act to set up monetary policy panel

March 03, 2015 12:36 am | Updated April 02, 2016 07:27 am IST - NEW DELHI:

An agreement between the Centre and the Reserve Bank of India last month formalised a policy that the central bank had been following since January 2014, of prioritizing controlling price rise.

“In case, factors beyond the control of the Reserve Bank such as fiscal irresponsibility of the Centre or constraints in supplies of goods and services are stoking inflation, it (RBI) could hike interest rates to meet the target set,” Finance Secretary Rajiv Mehrishi told reporters on Monday. The Centre would amend the RBI Act for the setting up of the proposed monetary policy committee, a key element of the new framework.

Replying to a query, Mr. Mehrishi said the budget announcement about proposed ‘strategic disinvestment’ in public sector units would enable the Centre to induct private strategic partners.

Chief Economic Adviser Arvind Subramanian said the momentum of inflation in consumer prices of food for January was slower than that for overall inflation, reflecting the slippage in the growth rate of rural wages.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.