Ensuring low and stable inflationIt is critical to understand what autonomy and institutional integrity mean for a central bank like the RBI. The RBI, like most central banks, consists of technocrats and bureaucrats who are unelected and not directly accountable to the people. The central goal of central bank independence was to ensure low and stable inflation via the autonomous conduct of monetary policy. To be accurate, it was the RBI Governor — just one person — who had complete control over monetary policy goals and decisions. The separation of debt management from the RBI is not an assault on the RBI’s independence by the government.

Source: The Hindu January 18, 2017 00:31 UTC