Getting RBI communication right

Abstract

In these uncertain times, a forward guidance even through scenario analysis would help in anchoring expectations on interest rates, inflation expectations, banking developments and financial markets The stock markets have recorded significant rally in a single day after the remarks by Governor D Subbarao on the new inflation data released on May 14, barely 11 days after the annual policy announcement. The Governor has purported to have said, according to reports, that he would take into account the softening of inflation in the next mid-quarter policy statement on June 17, 2013. The communication policy of RBI seems to be certainly working in India. Read more at: https://www.financialexpress.com/archive/getting-rbi-communication-right/1116822/