The significance of RBI mentioning the word stagflation
The RBI Act is clear that if the inflation rate remains higher than the upper bound for three consecutive quarters, it will precipitate some government action. The RBI has to submit a report, outlining the reasons for inflation spiking and provide some suggestions for remedial action.
The RBI Act is clear that if the inflation rate remains higher than the upper bound for three consecutive quarters, it will precipitate some government action. The RBI has to submit a report, outlining the reasons for inflation spiking and provide some suggestions for remedial action.