Active Stocks
Tue Mar 19 2024 11:50:47
  1. Tata Consultancy Services share price
  2. 4,018.90 -3.04%
  1. Tata Steel share price
  2. 148.10 -1.00%
  1. Bharti Airtel share price
  2. 1,232.60 0.62%
  1. Power Grid Corporation Of India share price
  2. 261.00 -1.51%
  1. ITC share price
  2. 409.75 -1.83%
Business News/ Industry / Banking/  Inflation note to govt will be confidential
BackBack

Inflation note to govt will be confidential

Retail inflation has stayed above the central bank’s flexible target between January and August.

Inflation note to govt will be confidential (Ashish Vaishnav)Premium
Inflation note to govt will be confidential (Ashish Vaishnav)

The Reserve Bank of India (RBI) does not intend to make public its letter to the union government explaining why the central bank failed to meet the inflation target of 2-6% for three consecutive quarters.

Retail inflation has stayed above the central bank’s flexible target between January and August. It is not expected to turn benign in September either, and RBI therefore has to send a report to the government in October.

Under the monetary policy framework, RBI has to maintain the consumer price inflation in the 2-6% range, with the median target of 4%. Failing so for three consecutive quarters requires the central bank to write to the union government, citing reasons and suggesting remedial measures. “It is a privileged communication between the RBI and the government and so at this point of time, I cannot say whether it will be made public. From our end, we will not make it public…" said RBI governor Shaktikanta Das.

In May 2016, the RBI Act of 1934 was amended to provide a statutory basis for the implementation of the flexible inflation targeting framework.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Shayan Ghosh
Shayan Ghosh is a national editor at Mint reporting on traditional banks and shadow banks. He has over 12 years of experience in financial journalism. Based in Mint’s Mumbai bureau since 2018, he tracks interest rate movements and its impact on companies and the broader economy. His interests also include the distressed debt market, especially as India’s bankruptcy law attempts recoveries of billions worth of toxic assets.
Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 30 Sep 2022, 11:03 PM IST
Next Story footLogo
Recommended For You
Banking Stocks
₹1,061.35-1.1%
₹1,446.20.06%
₹1,081.20.35%
₹120.05-1.67%
₹730.7-0.68%
Switch to the Mint app for fast and personalized news - Get App