The finance ministry is inclined to give RBI Governor 'conditional' veto power over MPC
The Finance Ministry and RBI (Reserve Bank of India) will decide on the composition of MPC (monetary policy committee) in over two months, according to a media report.
Both the authorities are in a discussion on shape of proposed MPC. The MPC will have external experts to allow heterogeneity of views, the report said.
The finance ministry is inclined to give RBI Governor 'conditional' veto power over MPC; the report further said.
In March, the finance ministry and RBI had signed a monetary policy framework to curb inflation. The objective of monetary policy is to primarily maintain price stability, while keeping in mind the objective of growth. The RBI will aim to bring inflation below 6% by January 2016. The inflation target will be 4% for FY17 and all subsequent years.
Both the authorities are in a discussion on shape of proposed MPC. The MPC will have external experts to allow heterogeneity of views, the report said.
The finance ministry is inclined to give RBI Governor 'conditional' veto power over MPC; the report further said.
In March, the finance ministry and RBI had signed a monetary policy framework to curb inflation. The objective of monetary policy is to primarily maintain price stability, while keeping in mind the objective of growth. The RBI will aim to bring inflation below 6% by January 2016. The inflation target will be 4% for FY17 and all subsequent years.
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