Mooduru Dimma( Gula Pooku Kathalu)- Aunty Pooku gula

The Reserve Bank of India (RBI) has agreed to the proposal that the right to decide on an inflation target for the economy will become the government’s mandate and that the central bank would focus on achieving it, Finance Minister P Chidambaram said while addressing a joint press conference with governor Raghuram Rajan. The development becomes important in view of a recent report submitted by a panel led by RBI Deputy Governor Urjit Patel that had called for the central bank to start laying out formal inflation targets, as is done in many Western nations, and then work towards achieving it. “I met the RBI board and we discussed several issues relating to the economy,” the FM said. “I drew their attention to a part in my interim budget [in February] where I said – and I had consulted Prime Minister Manmohan Singh – that the goal of economic stability is both price stability as well as inflation.”