RBI director wants to bolster inflation measures


Inflation-indexed bonds should be introduced into the Indian debt market to help measure and contain inflation expectations, Deepak Mohanty, an executive director at the Reserve Bank of India, said in a speech today (November 9).

Speaking at an Indian business school, Mohanty underlined how peoples' belief about future inflation is important in shaping its actual trends. However, he said it is unclear whether these expectations are formed on past experience or from a forward-looking perspective.

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