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  • Category: Miscellaneous

    Prime Minister's Independence Day speech-2016 covers the inflation target

    Delivering his third Independence Day address, Prime Minister has backed the 4% inflation target, within a range of 2 percentage points either way, which had been earlier agreed with by the outgoing Reserve Bank of India Governor, Mr. Raghuram Rajan. The Government formally notified the medium-term inflation target just before Mr. Rajan held his final policy meeting on 9th August, 2016. Figures projected on last Friday showed inflation is over 6%, which is outside the target range. The Prime Minister has further stated that the present Government has brought down the consumer price growth from double digits under the previous Government.
  • #575407
    Let me confess that I personally don't fully understand such financial or budgetary jargon. Therefore I tend to surmise that a majority of common men like me also don't know much about the inflation figure and RBI policies.

    However, we do know that the prices of commodities like dal and vegetables and almost every other household supplies are ever increasing. The politicians and bureaucrats have always been jugglers of data and figures.

    I do agree that at the level of the prime Minister, they have to have a much wider vision and think at macro level after taking into account the overall perspective and are required to have a holistic approach. But the fact remains that they too have to think about the outcome of the next general elections as their survival depends on the same.

    Let us encourage each other in sharing knowledge.

  • #575413
    The Reserve Bank of India not only fixes the interest rate and repo rate, it also fixes the target of limiting inflation taking into consideration macro-economic and micro-economic scenario. The target fixed by the Governor, RBI has been backed by the PM in his Independence Day speech.
    “Whenever I feel the need to exercise, I lie down until it goes away.” - Paul Terry

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