Time for RBI to start reducing rates? RT @htTweets: #BreakingNews | August WPI #inflation declines to 3.74% as compared to 5.19% in July
@ashish_lalla But CPI driven by food prices which is driven by Govt MSP/policies. So does monetary policy really have an impact on CPI?
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@authoramish reasons are bigger for use of CPI.. RBI started concentrating on demand side of macros much like european and US economies -
@authoramish demand side inflation is more accurately seen in CPI.. -
@authoramish for supply side of money tht too for industrial investments RBI feels reliance is more on ECBs, FIIs and FDI -
@authoramish so as per Rajan's policy logic country's borrowings must reflect the ppl who use it & not corporates.. so delinking from WPI
End of conversation
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