Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.


Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence


Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » India
1-min read

'RBI's Dominant Objective is Price Stability': C Rangarajan Says Inflation, Economic Growth Should be Considered Together

The former RBI governor C Rangarajan said that the Monetary POlicy committee should consider price stability in the context of what is happening to economic growth.


Updated:October 30, 2019, 12:25 PM IST
facebookTwitter Pocket whatsapp
'RBI's Dominant Objective is Price Stability': C Rangarajan Says Inflation, Economic Growth Should be Considered Together
File photo of former RBI Governor C Rangarajan.

Former RBI governor C Rangarajan, who is considered the doyen of central banking, on Tuesday said that a strong distinction should not be made between inflation and economic growth and warned that RBI’s sole focus shouldn’t only be on price stability.

“What is happening now is the dominant objective of the RBI is price stability. But that has to be done in the context of what is happening to economic growth,” he said in an interview with CNBC-TV 18.

Rangarajan’s comments come days after the central bank cut interest rates for the fifth time in a row in an attempt to give a renewed push to a slowing economy.

“Just look at the minutes of the monetary policy committee. There is a great of discussion about what is going to happen to economic growth and what are the factors that might actually have an impact on price levels. Therefore, I think we should not draw too strong a distinction between the two," Rangarajan said.

He also ruminated that the repo rate had come to be an important policy instrument since post-liberation in the early 1990s when the Cash Reserve Ratio was slashed and the administered structure of interest rate was abandoned.

Since 1993, he said, the relationship between foreign exchange market and domestic money market became intense “and as a consequence the monetary policy issues were also related to what is happening to the exchange rate and what is happening in the rest of the world”.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

facebookTwitter Pocket whatsapp

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results