February 07, 2023 06:43 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
S Jaishankar discusses bilateral ties, trade pact with Canadian counterpart Melanie Joly | Mallikarjun Kharge, Rahul Gandhi express grief over deaths due to earthquake in Turkey, Syria | At least 2,300 killed as 3 powerful earthquakes hit Turkey, Syria | PM Narendra Modi to inaugurate India Energy Week 2023 tomorrow | Assam: G20 delegates visits Kaziranga National Park
Former RBI Gov Raghuram Rajan says central bankers should gear up for low inflation: Report Raghuram Rajan
Image Credit: wikipedia.org

Former RBI Gov Raghuram Rajan says central bankers should gear up for low inflation: Report

India Blooms News Service | @indiablooms | 03 Dec 2022, 12:51 am

Former Reserve Bank governor Raghuram Rajan Friday warned that the global economy could go back to a low inflation regime and central bankers implementing restrictive monetary policies should keep that in mind, according to a Bloomberg report.

“We should be prepared to potentially go back to low inflation regime,” he was quoted as saying by Bloomberg.

Rajan was speaking at a conference organised by the Bank of Thailand and the Bank for International Settlements.

“We need to examine what constrained us,” Rajan said.

“We need to assess if we didn’t recognise inflation building or we were actually waiting for our instruments to play out, wanting to preserve them for the next time,” he said according to the report.

Therefore, it is important for central banks today to pursue policies that provide for changes in inflation dynamics over time, he said.

The headwinds, including de-globalisation, slow growth in China and K-shaped recovery in emerging economies can hurt growth, he underscored.

Rajan said amid volatile times, emerging market central bankers have done a wonderful job in anticipating the need to raise interest rates and it has “served them well", the report said.