RBI governor defends 3% inflation target
The Reserve Bank of India (RBI) governor, Duvvuri Subbarao, comprehensively rejected raising the central bank's inflation target in a speech on March 8.
The RBI currently targets 3% inflation in the medium-term. Indian wholesale price index (WPI) inflation has averaged 8.8% in the past three years; while in the three-year period prior to the finanical crisis it averaged 6%.
However, Subbarao said this does not constitute a permanent "upward phase shift" in inflation. "Admittedly, the average
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