The government also deserves credit for reducing the fiscal deficit and accepting the new monetary policy framework. Will migration to the new monetary policy framework enhance RBI’s autonomy and independence? To complete the process, a monetary policy committee (MPC) will now have to be constituted to decide policy rates. His tenure at the RBI also witnessed changes in other aspects of the monetary policy. And the migration to this framework for monetary policy is undoubtedly Rajan’s most defining contribution to policymaking as governor of the RBI.

Source: Mint August 09, 2016 21:56 UTC