Fighting inflation not just RBI’s responsibility4 min read . Updated: 04 Nov 2022, 02:25 AM IST
- Fiscal policy has a key role too and progressive taxation can help the cause while boosting growth.
The Reserve Bank of India’s (RBI) Monetary Policy Committee is expected to submit its report on why India’s inflation target was missed after its meeting on 3 November. The report is a statutory requirement, part of a 2016 agreement between the government and RBI. Both have made it clear that the report will not be made public. But even if they are, it is unlikely to offer any new insight on the future trajectory of inflation in the country or effectiveness of monetary policy instruments in containing inflation. While RBI may be blamed for being slow to respond to the inflation challenge, despite clear signs of it as early as November last year, it is unfair to place the entire responsibility of inflation targeting on the central bank alone.