Mumbai, 8/9: Finance Minister Nirmala Sitharaman on Thursday said the Reserve Bank will have to be more synchronised with the fiscal policy and other factors in taming inflation.
Inflation management cannot be singularly left to the monetary policy, which has proved totally ineffective in many countries, she said at a seminar organised by economic think-tank Icrier.
“The RBI will have to synchronise somewhat, may be not as much synchronised as other western developed countries would do. I’m not prescribing anything to the Reserve Bank… I’m not giving any forward direction to the RBI but it is the truth that India’s solution to handling the economy, part of which is handling inflation also is an exercise where the fiscal policy, together with the monetary policy has to work,” she said.
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