Monetary Policy Framework

Big test for inflation pact between govt, RBI will come when crude prices spike

Going by the past experience, the government has mostly been sceptical on the RBI’s reasons for not slashing interest rates

RBI-govt deal on monetary policy cuts both ways; FM also has to deliver

Contrary to the general assumption, the monetary policy framework that assigns the task of management to the RBI is not one-sided. It implicitly commits the government too to a sensible fiscal policy, though this is not stated.

Budget 2015: Easing inflation provides room for rate cut by RBI, says Jaitley