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6) The Reserve Bank of India and the finance ministry are agreed that the CPI would be the sole parameter to set policy rates and anchor inflationary expectations. Discuss why. Also examine what implications would recently revised base year and weights for the various goods and services in the consumer price index (CPI) will have on policy rates.

TopicIndian Economy

6) The Reserve Bank of India and the finance ministry are agreed that the CPI would be the sole parameter to set policy rates and anchor inflationary expectations. Discuss why. Also examine what implications would recently revised base year and weights for the various goods and services in the consumer price index (CPI) will have on policy rates.  (200 Words)

Economic Times