Business

Under Urjit Patel, RBI zooms in on 4% inflation target

Under governor Urjit Patel, the Reserve Bank of India (RBI) will target inflation of 4 percent, three officials familiar with its thinking said, adopting a narrower reading of its mandate than markets in a bid to stamp out rampant price rises of the past.

The differing interpretations of amendments to last year's RBI Act reflect sometimes strained relations between the market and the central bank, and are proving a test for Patel some eight months into his tenure.

The amendments were part of landmark changes to India's monetary policy pushed by Patel, then deputy governor, and his predecessor as governor, Raghuram Rajan, and require the RBI "to contain inflation within the specified target level" of 4 percent, but within a tolerated band of 2-6 percent.

Markets have interpreted that as the range of 2-6 percent, arguing that pursuing a specific 4 percent target takes away the flexibility needed in an economy that must grow by at least 8 percent a year to allow for full employment.

But the RBI is determined to chase the 4 percent figure, the officials said, as Patel and the other five members of his monetary policy committee (MPC) seek to defend the RBI's credibility on inflation.

Two Koreas to discuss sports exchanges

Seoul : The secretary general of the Korean Sport & Olympic Committee Jeon Choong-ryul said, sports could work as an important stepping stone to e...

Credit outlook for Indian Corporate Sector in FY2019 expected to be stable, says ICRA

New Delhi : Lead by consumer-oriented sectors, the non-infra corporate sector has witnessed some revival in growth and profitability indicators over l...

MobiKwik invests Rs. 2 crores in Pivotchain Solutions

New Delhi : To strengthen its fintech portfolio, MobiKwik has announced a strategic investment of Rs. 2 crores in Pune based data science company Pivo...

Award-winning Director Anant Gupta aims to expand his production venture 'A New Dimension'

New Delhi : Anant Gupta, a young, handsome and dynamic filmmaker and creative entrepreneur from Delhi has earned quite a fame in a short span of his c...