Raghuram Rajan’s Perspective on Benchmark Interest Rates Introduction Former Reserve Bank of India (RBI) Governor Raghuram Rajan has voiced concerns about the practice of excluding food prices from headline inflation while setting benchmark interest rates. He believes that such actions could undermine public trust in the central bank’s ability to manage inflation effectively. Core Suggestions from Raghuram Rajan Inclusion of PPI: Rajan recommends that the RBI should incorporate the Producer Price Index (PPI) into its […]
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