Ten years of inflation targeting: RBI’s monetary policy framework has worked could still be improved
Second, central bank communication is a policy instrument in itself. Policy statements have become more focused with FIT, but ambiguities persist. RBI announces a policy stance, such as ‘neutral’, ‘accommodative’ or ‘withdrawal of accommodation,’ as a separate decision alongside its rate action, making it one of the few central banks to treat its stance label as a distinct policy signal.
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