RBI focus is on clarity in communication since it adopted flexible inflation targeting: Deputy governor Michael Patra

November 23, 2024

The Reserve Bank of India (RBI) is prioritizing clear communication in its monetary policy, aligning with global practices. While the RBI emphasizes transparency, it refrains from providing specific forward guidance on inflation. Research indicates that the RBI’s communication tone significantly influences market expectations, particularly during periods of monetary policy tightening.

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