India overhauls monetary policy, sets 4% inflation target for FY2017
Tue, Mar 03, 2015 - 5:50 AM
Inflation in India has moderated sharply as oil prices slumped since last year. Under the new policy document, the RBI will first aim to have consumer inflation fall below 6 per cent by January 2016, in line with objectives already spelt out by the central bank.
Mr Rajan says inflation has to be subdued for India to achieve sustainable long-term growth
INDIA's government and central bank have agreed to commit to inflation targeting, in the biggest change to monetary policy since the country's economy was opened up more than two decades ago, putting priority on subduing almost chronically volatile prices.