RBI governor favours flexible inflation target

Central bank inflation targets should be flexible to allow for varying economic conditions, Reserve Bank of India governor Bimal Jalan said Thursday.

In a speech Jalan said central banks sometimes had to make a choice between stemming the rate of inflation to bring it on target or allowing inflation to rise to achieve economic growth.

It was easier for a central bank to set inflation targets when economic growth was good, he said. "But what happens when things aren't so good?

"It seems to me that a

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