While there has been little doubt that inflation-hawk Raghuram Rajan has been unmindful of the growth imperatives, the question now is whether the RBI ignores even the low inflation numbers.
After the latest data showed consumer price index-based retail inflation at 6-year low of 6.5 per cent for September, the wholesale price index-based headline inflation at 5-year low of 2.38 percent.
The Reserve Bank of India (RBI) has been hawkish on policy rates for the past four years to contain inflation. The central bank has maintained tight monetary policy despite reservations from the elected representatives and the government. What's worse, the hawkish stance had little perceptible impact on the price rise, as the inflation remained stubbornly high.