RBI can’t target inflation, says Subbarao

RBI can’t target inflation, says Subbarao
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First Published: Tue, Feb 16 2010. 07 28 PM IST
Updated: Tue, Feb 16 2010. 07 28 PM IST
Mumbai: The Reserve Bank of India (RBI) cannot target inflation as transmission of monetary policy is muted in India, its governor said on Tuesday.
“If monetary policy transmission is muted like in India as some interest rates are administered, we can’t be targeting inflation,” Duvvuri Subbarao told reporters on the sidelines of an event in Mumbai.
He added it was difficult for monetary policy to attack supply-side driven inflation.
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First Published: Tue, Feb 16 2010. 07 28 PM IST
More Topics: RBI | Inflation | Monetary Policy | D Subbarao | India |