Wednesday; Bimal Jalan, the Former RBI Governor said that 'inflation cannot traget the work in India because we depend on the factors like monsoon and oil prices over which neither the RBI nor the government has any control.
According to the Mr. Jalan at a function to release a book written by former RBI Governor Y V Reddy, "Inflation targeting is fine for countries like the US and the UK. But we (India) are dependent on rain, import of oil from Gulf countries. In India, there is no point in setting inflation target."
"What can the RBI do if food prices go up by 40 per cent as a result of monsoon failure?", Jalan questioned.
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