Ø Finance Minister Arun Jaitley has given the
go-ahead for a major overhaul of the current monetary policy framework wherein
the Centre will specify ‘inflation targets’
for the Reserve Bank of India (RBI) to achieve.
Under the proposed new regime, the RBI will set inflation as its top priority
in its policy statements. The decision departs from the recommendation of an
expert committee of the RBI, appointed to examine monetary policy. Headed by
Reserve Bank Deputy Governor Urjit R. Patel, the committee had recommended that
the monetary policy decision-making should be vested with a monetary policy
committee, chaired by the RBI Governor. Other recommendations were that the
apex bank adopt the new Consumer Price Index (CPI) as the measure of the
nominal anchor for monetary policy. And that the RBI set the target CPI
inflation level at 4 per cent (+/- 2 per cent) to be achieved through its
monetary policy tools.
Ø Stepping up its attempts to internationalise
the Kashmir issue, Pakistan has written to U.N. Secretary-General Ban ki-moon
on the security situation along the Line of Control and the International
Border, and sought the world body’s intervention.
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