Your editorial Monetary Policy; not by Inflation alone ( 24/2/15 ) is very apt to make RBI ponder seriously and change in its policy stance. While, keeping inflation under control at a reasonable level at around 5% is highly desirable it cannot be taken as a sole and inevitable condition to pursue a favorable monetary policy which has other major objectives to be achieved Viz Monetary stability, economic growth and provision of conducive economic environment in terms of availability of adequate credit at reasonable cost and credibility in the whole support system of banking and finance that it can be depended upon for expansion of the economy on a larger scale. The fact that in respect of the broader economic objectives of the country there cannot be any second opinion that the Central Government and RBI have to be on the same wavelength in their thinking , framing of policies and pursuing appropriate and timely action.
Dr.T.V.Goplakrishnan
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