Raising farm output key to tame inflation: MPC Member
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In my view nominal rates therefore need to fall with inflation to prevent real rates rising. The majority of RBI MPC members want to wait and watch for longer to ensure inflation is falling sustainably - Ashima Goyal, MPC Member, RBI
New Delhi: RBI’s Monetary Policy Committee Member Ashima Goyal has said the Prime Minister Narendra Modi led-NDA government in its third term should focus on raising farm productivity and improving supply chain to reduce volatility in food prices.
Goyal further said the prospects for robust growth and falling inflation continue with the return of a stable conservative government that will allow coordination of monetary and fiscal policy in the best interests of the country. “Since the economy is doing well, continuity is very important. Feasible reforms that improve the supply-side and build on technology and youth advantage are required,” she said.
Goyal emphasised that capacity needs to expand in health, education, environment, courts, policing as well as in infrastructure.
“Rising agricultural productivity and strong supply chains are necessary to reduce volatility in food prices,” she said, adding that many of these require good coordination with the states.
