Lower inflation target to hurt growth, but will bring financial stability: RBI study
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Reserve Bank of India (RBI). (File Photo: IANS). Image Source: IANS News
Mumbai, May 24 : A Reserve Bank of India (RBI) study has suggested a decision to have a lower inflation target would jeopardise the long-term growth but help in bringing in financial stability.
"The policy makers may choose to set the inflation target below the threshold level, but only by consciously sacrificing long-term real growth of GDP and hence the adverse impact on the rate of poverty alleviation," said the study titled 'Threshold Level of Inflation - Concept and Measurement'